https://deno.com/deploy/docs/pricing-and-limits
AWS sucks hairy balls at providing things that are simple for developers to use, so that could be their competitive advantage, but I'm just guessing here.
I mean Zoom has no right to exist because you can use Chime?
There is always room for better UX, better support, different approach etc.
Deno seems to be targeting cloudflare as a competitor for their service... But it's probable that AWS will release a cloudflare worker competitor themselves if deno continues with the MIT license.
You're right that v8 Isolates are blazing fast, but Lambda runs functions in a microvm spawn by Firecracker [0], which is likely to be more, not less, secure than Isolates [1].
This is debatable. It's true that V8 is a much larger attack surface than Firecracker, therefore likely to have more security bugs than Firecracker itself. However, Firecracker runs attacker-provided native code directly on hardware, which means that hardware itself becomes an attack surface, one that is quite wide, not fully documented, and very hard to patch if problems arise. It's much easier to work around hardware bugs when you're working from JS / Wasm and can control the code generation.
Ultimately I don't think you can really say one or the other model is more or less secure.
(Disclosure: I'm the tech lead for Cloudflare Workers so I am obviously biased here.)
Lambda integrates with existing AWS services, whilst Cloudflare invents newer services to go along with the serverless-first paradigm. Different strategies but they do compete with each other.