As someone who's been in this kind of position, I don't see it as a "moral panic" as much as it being a major obstacle when trying to teach more real-world programming and data science — e.g. how to write and manage code (and its dependencies) outside of a prepackaged CoLab environment.
You really think there's no concern if data scientists of the next generation have little care for the difference between a data file read from a local path vs. a cloud path? I mean, the "reproducibility crisis" was already full blown based on old-fashioned concepts of data files...