There were also other reasons given, like the amount of internal software that used e.g. IPv4 addresses. Also, AWS likes to have 'lots of small things' instead of one big thing (regions, AZs, cells, two pizza teams, no (official) monorepo) so regionalization was part of that.
Another big reason for regionalization, other than IPv4 exhaustion was that AWS promises customers that AWS regions are completely seperate, but with one big giant network, it turns out there were all sorts of services making calls between regions that nobody had realized. I have a couple of funny examples, but that might make me too identifiable :)