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Wouldn’t Vercel still make money in that scenario since Netlify uses them?

Netlify uses AWS (and Cloudflare? Vercel def uses Cloudflare)

Vercel runs on AWS.

Which PaaS are running on their own servers and earning a profit?

Netlify and Vercel both use AWS. AFAIK neither uses Cloudflare. Vercel did use Cloudflare for parts of its infra until about a year ago though.

Ah, ok. I knew they did use Cloudflare but had no idea they migrated off of it.

Cloudflare CEO treated Vercel CEO too badly in public, he needed to migrate off to save face.