I disagree that encryption at rest with AWS is actually the proper way. If someone can get to the actual hardware and steal disks, I can't trust that AWS hasn't also lost control of the encryption keys.
Just because something isn't 100% perfect in every scenario doesn't mean it shouldn't be done at all.
But I agree with your point, if you're really worried about data to the point where you don't trust AWS with encryption keys, you should self-manage your keys and manually encrypt/decrypt data without AWS KMS.