Probably an unpopular take and my experience is almost 10 years old, but I would be surprised to see the Amazon I worked at try to bury something like this. If the product isn't what the customer wants, it isn't what the customer wants - move on and build something the customer wants.

Yes agreed there were some funny business like not selling Chromecast, but the guiding principle was generally to make things customers want...

Do you think the Lambda team want people to use as many of their services as possible even when it's not actually appropriate and there are better architectures and approaches available? I doubt that. They probably understand that Lambda is a good service for some things and not for others, and using it as a part of deploying things to AWS is a great idea but using it where it doesn't fit makes all of AWS look bad (in particular, hard to use and expensive.)

Especially now that it's on the frontpage of HN :-)))

Why would that be? Somebody figured out that AWS Lambda is not the answer to every single question?