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It's worse. For a 16 vCPU + 32GB RAM + 20TB traffic (fly.io has max 8 vCPU) I would pay around $750 on fly.io instead of €30 on Hetzner. People are willing to pay a lot for I guess an easy deploy story ?

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Developer time is pretty costy and if you can save a lot of dev time a noticeable higher running cost can be well worth it for some companies (like smaller companies, startups which have still a fluent changing business model etc.).

Through also it's not a fair compression because for the kind of services where being close to the edge and redundant over many places matters Hetzner isn't even an option. AWS maybe, but AWS is also pain in my experience.

That's fair. Depending on budget, requirements and capabilities of the team something like fly.io can become a valid option.

You pay for not having to manage anything yourself or hire somebody dedicated to do so. How much is that worth?

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