"We replaced a cluster of virtualized servers with a single bare metal server. Nothing has gone wrong, yet."
Just look at the most recent many hour long Azure downtime where Microsoft could not even get microsoft.com back. With that much downtime you could physically move drives between servers multiple times each year, and still have less downtime. Servers are very reliable, cloud software is not.
I'm not saying people should use a single server if they can avoid it, but using a single cloud provider is just as bad. "We moved to the cloud, with managed services and redundancy, nothing has gone wrong...today"