Cloud in general was a mistake. We took a system explicitly designed for decentralization and resilience and centralized it and created a few neat points of failure to take the whole damn thing down.
I am a self-host enthousiast. So I use Hetzner, Kamal and other tools for self-managing our servers, but we still have Cloudflare in front of them because we didn't want to handle the parts I mentioned (yet, we might sometime).
Calling it a mistake is a very narrow look at it. Just because it goes down every now and then, it isn't a mistake. Going for cloud or not has its trade-offs and I agree that paying 200 dollars a month for a 1GB Heroku Redis instance is complete madness when you can get a 4GB VPS on Hetzner for 3,8 a month. Then again, some people are willing to make that trade-off for not having to manage the servers.
Cloud servers have taught me so much about working with servers because they are so easy and cheap to spin up, experiment with and then get rid of again. If I had had to buy racks and host them each time I wanted to try something, I would've never done it.
But in the face of adversity, it's a huge liability. Imagine Chinese Hackers taking down AWS, Cloudflare, Azure and GCP simultaneously in some future conflict. Imagine what that would do to the West.
I don't believe in Fukuyamas End of History. History is still happening, and the choices we make will determine how it plays out.
Almost no one gets mad if your site and half the internet were down.
They'd only have to take down a few services to completely cripple the West - the exact case ARPANET was designed to prevent.