But also we need to accept that this is also happening because software startups (SaaS or otherwise) are functioning more and more like predators than value providers these days.
At this point, it's not just the aggressive subscription/upselling models, but the various dark patterns in their design, the abusive immediate various newsletter subscriptions, the constant emailing, the popups, the little help widget thing at the bottom right corner of every startup that's there to supposedly help you, the hostile data collection, and many many other insulting and abusive patterns that's more or less a standard now.
And yes, FAANGs do this, but people are comfortable with the abuser they know and already are prey to than the one they don't.
There's nothing wrong with "the cloud", it's all the same tech behind the scenes whether you own it and run it or not, but it's the mercilessly hostile, incredibly ruthless and vicious attitude that these startups display that makes people not want to pay for them.