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Last I looked at Scaleway what put me off was the fact that their storage was not backed by RAID [1].

Compared to other, comparably priced providers like Hetzner and OVH that do use RAID this is a big caveat IMHO. Of course important data should be backed up remotely but disks fail and I'm not willing to deal with the hassle of restoring data simply because a single disk failed.

[1] https://www.scaleway.com/faq/servers/volumes/#-Local-Volumes

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Different use cases. If your servers are sufficiently redundant, then RAID is a waste of money, and you might be better off getting more capacity for your money.

But for critical data, or data where you can't scale out as easily, of course, that's another matter.

I won't use RAID for services I have 10 identical copies of and health checks, but I will for the database server that is a pain if I have to fail over or restore, in other words.

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