Both of the following can be true:

- A lot of companies and startups can get by with a few modest sized VPSs for their applications

- Cloud providers and other infrastructure managed services can provide a lot value that justifies paying for them.

Edit: also why the obsession with dedicated hardware and so anti vCPU? For the vast majority of people this is an implementation detail that doesn't matter at all. A lot of that dedicated server is sitting idle.