With the big advantage of when something goes sideways I can actually debug the problem, for the scale of most of the systems we run one client per VPS with a backup for some is just fine (though we are transitioning the spares onto a different provider from the primary after Linode took a pasting).
Also looking at getting a couple of beefy dedicateds down the line and running Xen for the stuff we really need to not be wiped out.
AWS is excellent for a given set of trade-offs but if you have a good Ops background you can save some money which is nice but (for me) more crucially you can access your entire stack and move wherever you want.
Also frankly I loathe dealing with AWS's web interfaces for anything - frankly they are embarrassingly bad for a company that prides itself on end user experience.
(I'm assuming you're talking metaphorically, as for my part we use onsite repair warranties to deal with failure of new hardware, and just replace old hardware except when it's something very obvious like a failed drive - it's rarely worth the trouble to do a lot of diagnostics at smaller scales; in any case you can still save and avoid this by using a managed hosting provider)
I've just moved a client off EC2 because the premium they were paying would have been a massive problem. The 85% reduction in hosting cost has bought them months of extra runway. Their operational costs related to their hosting also dropped - there's simply been fewer issues to deal with.
I'm sure there are instances where AWS is fine. But there are also plenty of cases where it is a matter of survival to cut those costs.
But I don't live in a world where runway is a consideration so YMMV. At the time I commented, the parent post was getting downvoted. I've seen that knee jerk reaction on HN multiple times, and that is what prompted my comment.
It's kind of hard to get numbers though since most private companies don't trumpet their revenue numbers or engineering headcount.