If anything, centralisation shields companies using a hyperscaler from criticism. You’ll see downtime no matter where you host. If you self host and go down for a few hours, customers blame you. If you host on AWS and “the internet goes down”, then customers treat it akin to an act of God, like a natural disaster that affects everyone.

It’s not great being down for hours, but that will happen regardless. Most companies prefer the option that helps them avoid the ire of their customers.

Where it’s a bigger problem is when a critical industry like retail banking in a country all choose AWS. When AWS goes down all citizens lose access to their money. They can’t pay for groceries or transport. They’re stranded and starving, life grinds to a halt. But even then, this is not the bank’s problem because they’re not doing worse than their competitors. It’s something for the banking regulator and government to worry about. I’m not saying the bank shouldn’t worry about it, I’m saying in practice they don’t worry about it unless the regulator makes them worry.

I completely empathise with people frustrated with this status quo. It’s not great that we’ve normalised a few large outages a year. But for most companies, this is the rational thing to do. And barring a few critical industries like banking, it’s also rational for governments to not intervene.