I sort of tend to agree with you, but the counter-point is that there is always going to be some critical piece of the infrastructure that you are dependent upon that someone else controls. If you colocate, it's the data centre. If you host on-prem, it's the physical telco infrastructure.

There are no shortages of incompetent people and institutions that will screw you. It's typically incompetence, not malice. But you will run into malicious actors as well.

The reason I sort of agree with you is that, being someone who is very comfortable with bare metal solutions and came from the 90s mentality of writing portable code, I have started to see "The Cloud" as a return to mainframe programming. There is nothing wrong with that, but you are programming for "a machine" that often leads to code that is exceedingly hard to port. "Cloud Agnosticism" is the industry buzzword for not locking yourself into one vendor, but you need to make that decision on day one and set engineering policies enforcing a cloud services abstraction layer to be maintained. Most startups in the process of scaling are not going to see the immediate business value in incurring that cost. (though, with more horror stories like this one maybe that will change... but I doubt it).