Why do you think that is? Hosts push cloud as it furthers their bottom line.
Cloud is popular because it is cheap. For consumers and providers. If you know exactly the resources you'll need and have infrastructure in place to scale then sure, VPS/cloud hosting might be good if you're looking to cut costs.
In the end though, you'll always be sharing and limited. If you're approve dynamic allocation then you'll just be paying for it at a premium.