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I think they’re rolling out their own managed auth service, may have already done so actually.

They launched this a few months ago

What is the plan if Amazon decides to launch it as a service?

Amazon already has Cognito. It's garbage. https://aws.amazon.com/cognito/

Not great but also far from garage for something that is extremely low cost.

I mean, it depends on your use case (and I say this as a cognito competitor).

There are times when Cognito makes a ton of sense (I wrote about some of them here[0]). There are other times when it doesn't.

What I keep wondering and asking is "why doesn't AWS invest more in Cognito?"[1]