I don't follow where you're trying to go here, or how you intend this to contradict anything I said.
You're right that most people don't run 100k servers. In fact, most people don't run any servers at all, and don't use kubernetes. Some people do, and some of those people use approaches like this.
The comment I was responding to, by my reading, seems to express incredulity that anyone would do this, and seems to imply that this is a bad, counterproductive idea that nobody should ever implement. The most notable quote is "I feel like I landed in crazy-land". Do you read it differently from me?
My intent in my reply was to describe some of the use-cases where this is helpful. It's not only FAANG that run more than a small handful of clusters; there are plenty of smaller businesses that need to run large numbers of clusters.
I don't know anything about the company that wrote this article, but I found https://zitadel.ch/usecases on their website, and given that description, it sounds quite plausible that they run many small clusters in many clouds and datacenters. They probably don't need a ton of compute, but I wouldn't be surprised if they had latency needs for being close to their customers, or other specialized requirements that motivate dedicated clusters.
I also don't know anything about the insurance industry, so I'm curious to hear if I've guessed incorrectly, but it doesn't seem like the kind of business with especially high compute needs. I believe you when you say that your company has no use for this.
Can you believe me when I say that there are genuine problems these systems are trying to address? I keep hearing about companies who fund their employees building unnecessary pointless over-engineered production automation, but I have yet to ever encounter one in real life. Every SRE job I've had so far has been on a team that really wanted to invest time in improving infrastructure and automation, but couldn't get time away from the toil for it. If anyone can recommend a company that over-invests in infrastructure automation and architecture instead of under-invests, I'd dearly love to try it and see if it's as bad as I've heard.
Even without high compute needs or large numbers of clusters, there's still a lot of benefits you can get when you can move things to declarative configurations and away from global mutable state and human minds. I agree that this can go wrong, but that doesn't mean it's categorically worthless to try.
On the other hand, if you're just looking to gripe about it having gone wrong for you, could you share some war stories? I may be feeling idealistic from frustration with low investment in tools support and production automation lately, so maybe I could use some horror stories of it going badly to scare me straight. :)