Hardware is cheap relative to salaries. It might take 1 engineer 1 quarter to optimize. Compare that to a few thousand per server.
Global public cloud spend is hundreds of billions of dollars a year. I wouldn't be surprised if it's AWS's marketing team that came up with the talking point about how much more expensive developer time is.
Edit: put this another way- wherever you work, you might know what parts of the architecture need some performance work but do you know what parts of the architecture cost the most money?
I might say, "hardware" is expensive compared to (my) salary :)
It doesn’t take engineering knowledge to browse through CloudWatch metrics and see that your average CPU utilization is in the single digits.