In your specific situation: it really just is the case that Brazil soaks us on import fees. Getting machines in racks in Brazil is just crazy expensive. We're going to keep doing it! Brazil has too many good sandwiches. But the idea behind building a new public cloud on our own hardware is for us to be around for the long haul, and flat low global pricing is not a "long haul" decision.
(It wasn't a long haul decision last year, either, but building a billing system capable of expressing this stuff is a nightmare from which we have not yet fully awoken. It turned out to be a shockingly hard problem.)
There are going to be cases where places like Hetzner make a lot sense compared to us. We hope you get your thing launched and find success wherever you end up. Some of our stuff, like LiteFS, you can take with you! :)