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It would be practical for the user, but not for the company.

Why does this not exist after years (more than a decade since EC2) of cloud computing?

Because it is not good for the VC investors.

AWS Lambda has had this knob for quite a few years, it’s called “provisioned capacity”, and it defines an upper bound to function concurrency.

While helpful, this is not the same. E.g. a global kill switch could be harder to overlook and easier to manage.