SQS/SNS, DynamoDB, ECS (EC2 and Fargate), Lambda, Kinesis, ECR, ALB, Aurora, S3, Glacier, EMR, EKS, multiple AZs, multiple regions, etc?
For us to get the same functionality as all of these services in colocated data centers would be an INSANE amount of work, we'd have to hire so many IT/hardware specialists for the networking, let alone hiring data storage tech specialists for stuff like Spark/Hadoop.
Looking only at costs for instances is only 10% of the story here.