I think the definition of serverless is too narrow (AWS lambdas/ Azure functions) and that serverless is really "I want to build apps, not manage infrastructure". That's not the same thing as putting everything onto functions.
I have a monolith we're preparing to move onto a managed container system (prolly AWS AppRunner). I don't want to manage K8 if I can help it, our app doesn't need complex server architecture.
Personally, I think it's just the next layer of abstraction up. Some won't benefit from serverless in the same way some are better off with in-house tin. I know some that need custom chipsets in-house, so can't even buy a stock rack server! However, many many web apps don't really need the control and will probably use facets of serverless over time. But it is still a revolution for old people like me that just don't want to manage servers anymore!