If they're not doing that, and their 1 server is talking to AWS resources, it means its using superadmin credentials. If that 1 server is compromised, can you see why that would be a bad idea?
It might be enough for now, but if you grow big enough to be a target it's very likely your home-spun lock won't stand up to professionals.
If it's only ever going to be a shed, there's no need for the infrastructure to support that many keys.
Most things have accounts (database, servers). Are you using separate ones or a global admin?
Any solution that you build is going to be more complicated and less secure than IAM. In IAM, your workload/server can have an identity. The software running on the server is issued temporary credentials as needed, and only has access to resources linked to the role. How do you do this without identity and access management? Roll your own because IAM is too crazy?