Hetzner and Digital Ocean are competing for small customers in a way that AWS, GCP and Azure don't need to.
If you only need a few hosts, you've got tons of options on where to get them, so competitive pricing is important.
If you want thousands of hosts, geographically distributed, and especially if you're a sizable company that cares more about best practices than costs, top tier cloud hosting is what you want, rather than low cost hosting. If you need a lot of equipment and want flexibility, you can get that at a big host, but it's harder from a smaller one. As a big customer of a medium-large host, with lots of promised flexibility, it was pretty easy to see how it worked for small requests and how it didn't for large requests (and it was fine, we'd ask for 200 servers of X and they'd give us a timeline and largely hit the timeline, but it wasn't the 1-3 hour timeline you get for a less than ten order; sometimes they'd already have equipment and need a week to cross ship and assemble, sometimes it would be a few weeks because they'd need do do vendor orders etc)
Do you mean the big-3 cloud platforms ? Their value proposition and lock-in mechanism is the palette of services and platforms, even though the services are not individually cost competitive. And they have high profit margins (eg AWS makes most of Amazon's profits).
If you only need a few hosts, you've got tons of options on where to get them, so competitive pricing is important.
If you want thousands of hosts, geographically distributed, and especially if you're a sizable company that cares more about best practices than costs, top tier cloud hosting is what you want, rather than low cost hosting. If you need a lot of equipment and want flexibility, you can get that at a big host, but it's harder from a smaller one. As a big customer of a medium-large host, with lots of promised flexibility, it was pretty easy to see how it worked for small requests and how it didn't for large requests (and it was fine, we'd ask for 200 servers of X and they'd give us a timeline and largely hit the timeline, but it wasn't the 1-3 hour timeline you get for a less than ten order; sometimes they'd already have equipment and need a week to cross ship and assemble, sometimes it would be a few weeks because they'd need do do vendor orders etc)