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From my anecdotal evidence, people are attracted to serverless because they spend way to much on aws and they hope that by turning things off they'll spend less.

Not many people have the problems solved by a serverless architecture (or they need more freedom), which is why it's not as common as just running your own long running instances.

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Not denying your experience, as it's probably true that the folks you've seen pursuing serverless may be misguided, but I want to contest your last point where you say "not many people" would benefit from serverless.

I would say that "literally any single person" benefits from serverless if they don't have the skills, knowledge, or time to handle the server/infrastructure responsibilities that come from running software.

If I'm a one man development shop with a sufficient budget, I'll probably find it far more productive when using serverless architecture to host my business logic than not.

Serverless comes with its own problems though - a less seamless dev experience and cold starts plus you have to host your data on their choice of data store etc.

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