If you do trading or adtech (which, let's face it, is trading) then yes, the overhead from virtualisation and cloud environments is an unacceptable tradeoff.
For most companies and their operating environments cloud gives flexibility in capacity planning, freedom to experiment wildly, access to practically unlimited storage[ß], plus reliable perimeter load balancing. And of course, for most companies engineering costs far more than compute. Paying the premium for cloud environment makes business sense if it means your development teams don't have to spend time waiting for available resources.
Funnily enough, even a number of high-end trading firms (including HFT shops) are moving to cloud. Number crunching for models, backtesting, CI, analysis and simulation pipelines, ... All of those require resources and rarely need to operate in tandem with the real-time trading systems. The same flexibility, ease of capacity expansion and freedom to bring transient resources online as needed saves on expensive development time.
If you're big enough, or need to operate fast enough then cloudless and baremetal are going to bring better ROI. Most companies aren't at these extreme ends, though.
ß: within limits; if you need to produce and store petabytes of changing data on a daily basis...