I partially agree with you, but my point is - things are even worse at times - arguing happens when there is more than single person involved - CTO may just not even considering/thinking on using hardware, it's a very strong habit to relay on cloudy stuff, atrophy of some sort.
> Second, connecting all the piping gives an illusion of doing work and feeling "important".
This happens as well, but I think it's more about "keeping things under control" - humans feel more comfortable when they control or tend to believe they control things, all humans, not just developers. From this perspective "gee, this Cloud has API and Console, I can manage it" gives this assurance -> leads to have feeling of control => preferable solution.