Isn't nitro mostly AWS marketing? They profit from it as they burn fewer CPU cycles on virtualization for shared hardware. But on dedicated hardware you own everything anyway, so why bother if AWS virtualization runs there?

The big difference is support for AWS ecosystem (also partly realized via nitro). You won't get that but for that price difference it's probably still ok.

Is Nitro a problem? It's there to stop users destroying the hardware, and has minimal performance impact.