>For example, a 200ms service task that needs to run every five minutes would need a dedicated service instance (or two!) in a traditional model
This feels like such a straw man. Under what traditional model would you spawn off an entire server instance for such a minor function? You'd slap it in as a service on an existing host. Hosts which for a long time now have been virtualized on consolidated hardware, not bare metal.
Serverless can bring big benefits for certain workloads, but hyping it up by misrepresenting the alternatives seems a dishonest attempt to justify investment in the big architectural changes you have to make to get there.