My takeaway is not a debate against the merits of cloud in the face of trade offs, but against the necessity of—the now ubiquitous—cloud architecture pattern (and related lock-in). The "this-vs-that" is a rhetorical device to introduce an alternative. Of course which solutions are right for different use cases will depend on so many different things, and it's those things that keep engineers employed! :)
That said, we can put our engineering hats on to solve for SRE concerns within the patterned proposed by the author; I'm thinking the "what about availability when your one server goes down?!" is a straw-man in the sense that we have different ways of solving the availability story than our Ubiquitous System, and of course the solution must depend on what's actually relevant.