Almost no one needs autoscaling; most startups won't get any traffic and even ones that jump a bit can run for many years on a tiny vps. Which is why most devs (by far) have no clue what is serverless and run cpanel with WP. There are companies who benefit from scaling obviously, just not that many.
Nevertheless that is part of the value prop, and this does not address it.
Isn’t that covered by the fact that the 4/mo is a VPS and you can log into the Hetzner admin and scale up your server with a few clicked when needed? Unless you mean automatic scaling which fair, that’s not something you can do.
That is only vertical scaling though. Serverless' advantage is that it almost always has horizontal scaling/resilience/failure handling built in
Most people are scaling down to zero (which is cheaper than $4/month last time I checked).
the clear advantage of serverless are: autoscaling and fault tollerance out the box, which single VM doesn't provide.
Otherwise it is not clear why one would use serverless..