I would say that it strongly depends on the type of requests you are handling.

Saying that you can run a 1GB lambda for 1 month nonstop for $32 does not impress me, and its kind of strange that it impresses you.

You could run a t2.micro with the same RAM for $6/mo if you reserve it for a year. And if you want to give that t2.micro a workload where it only has to respond to 1 request at a time, the same terms we are affording the lambda system, then it's no comparison.

Now, for responding to disparate requests every once in a while? Lambda is ideal. You can spin it up and you don't have to pay when it is isn't processing requests. But continuous requests? Hard no.

We can argue that the cost overhead at full load is worth it for the ability to "infinitely" scale with no effort. Alright, that's fine. But let's not pretend that it is "cheaper".