Such a weird take.
There is a cost to having on-call. Whether it's in the extra hours you are paying your engineers or other technicians, or sleep deprivation, dwindling motivation and performance, the cost is always there.
In a business, cost is always balanced with the return on that investment.
So it trivially follows that on-call only makes sense where the return is bigger than the investment. If you are having your $100/h engineers become $20/h engineers during the day because of the on-call rotation, and you lose $200 of sales over night when things are down (even your customers are asleep) — you are actually investing that $80/h difference for 8 hours ($640) to recover $200, for a net loss of $440.
Yes, there are cases where it's fully acceptable to simply have your service down for the night. Eg. imagine a service that provides the amount of energy sun is providing for a location (to combine it with solar farm production): is it really that bad if that's down at 2am? Sure, it might be nice to get it back up before the sun is up, but this is just a trivial example where an uptime of ~70% (fluctuates) is perfectly acceptable.