Well first of all, you can
always pay someone else for baremetal server hosting and support, just like with Amazon. So you don't need to buy and maintain, and you can still save costs - you're renting, just like with Amazon.
Second, even if Netflix's "workload" is variable, they're still using reserved instances. There's no practical difference from those to baremetal machines.
Finally, I am highly skeptical of anyone telling me that five more layers of abstraction make it easier or quicker to write, test and deploy code. Code is code. Servers are servers. Microservices are microservices. Different people are (or should be) maintaining all of these, and if they do their jobs right it should not incur a performance penalty on anyone else.
I will also state the obvious: if you don't hire the right people to manage the right pieces, you will waste huge amounts of time and money trying to figure out what other people have known for decades. This is universal, and has nothing to do with what technology you use.