I think the issue with tape at scale is that there is a lot of mechanical stuff that needs to be overcome. You will need a custom robot to allow for the management of hundreds of thousands of slots. I think also you'll need a custom tool for identifying the individual tapes (LTO does have a few ways of ID-ing the individual tapes)
Then you'll need make sure that your data stream don't mix. that seems easy, but you are optimising for filling tapes, and minimum retrievals per object. One advantage is that ibjecst should be encrypted before they even enter the tape storage system so the risk oulling the wrong file becomes one of correctly decrpyting, rather than fine management of file paths.
In addition the need for cloud providers to comply with userdata erasure means they have to frequently test their ability to read and write their backups - which should increase your confidence in their correctness. Yes problems can and do still happen, but IME far less often than the more traditional tape setups GP describes.