It’s absolutely insane compared with what bare metal providers charge.
Nobody ever got fired for using AWS.
BTW you don't need to "run your own server" per se on the bare metal or VPS providers. You can auto-provision with Terraform, run Kubernetes or Nomad/Consul, etc. You have to do some work to set up your templates and the environment you will use but once it's created you can stamp out copies of it endlessly.
There are cases where AWS et. al. make sense. The bottom line is that you need to do your own spreadsheets modeling your own workload and compare costs. Include extra labor for managing your own stuff and compare it to the added costs of AWS.
What you'll often find is that AWS and such are cheaper at a small to medium scale and DIY becomes cheaper (sometimes radically so) at larger scale.
If you max out that connection non-stop, you can push about 330 TB/month. The same amount of bandwidth from EC2 would cost roughly US$20,000.
These companies are still pretty profitable.
If you colocate your own hardware you can go even lower than the bare metal hosts.
They also offer comparatively much cheaper hardware, which is why I've been using them for all my heavy workloads for 8+ years.
VPS providers like Vultr and Digital Ocean are a bit more but still a lot cheaper than the big three.
Bandwidth prices at the big clouds are ludicrously high.
I have seen large scale deals where CloudFront comes in cheaper than what the smaller CDNs built on bare mantel can reasonably offer even with sizable commits.