You might be surprised to learn that there are economies of scale at play here. If you want a managed application that has light traffic, then you can pay less for serverless than you would pay for hardware + wasted hours when the hardware is powered on but serving no traffic.

I agree that there are some companies making poor decisions about which software they run in the cloud though. “Cloud mandates” are really stupid, because they’re basically just a trap where cloud providers offer a large amount of free cloud credits to get companies dependent on their platform.