It will get worse when the manufacturers of the best performing hardware will be the cloud providers themselves :) I am afraid Amazon will slowly drown out independent CPU (and eventually other gear, but with CPUs the playbook is most evident) manufacturers.

Today, Intel (and probably also AMD et al.) offer them exclusive deals on and even exclusive models of their hardware, due to the insane volumes "hyper-scalers" procure. In parallel, Amazon offers their own CPU arch (Graviton) cheaper than x86 cores to users of their platform in order to make it more attractive - at the insane margin AWS operates at, it can make these instances a loss leader, no problem. As a result, those in the x86 market that do not have a cloud business attached will grow weaker and weaker in comparison, and most cloud-native developer mindshare will shift to the cheaper option (since most engineering work in cloud envs is about reducing cost, period), which is AWS/GCP/... custom CPUs. And you, the random shmuck with an appetite for powerful on-prem hardware, will be left with worse products to buy for a higher price.