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That's no longer the case. Lambdas have fantastic applications to more complex use cases, so better debugging capabilities are now necessary.

You are definitely right. Serverless is much more than 5 years before

Thus spake the Master Programmer: "Though a program be but three lines long, someday it will have to be maintained."

Some people have gone full serverless, right or wrong (and I happen to think you are correct: Lambdas are best for simple scripts.)