I wholeheartedly agree, I'm trying to be generous as I know I have a bias here.
I think the AWS way made clear sense in the days before the current generation of tooling existed, when we were SSH-ing into our snowflake servers (for example). But now we have tools like Kubernetes/Nomad/OpenShift/etc/etc, the logic just doesn't seem to add up any more.
The main argument against it is generally of the form, "Yes, but we don't want to hire for non-cloud/bare-metal". Which is why I think a consultancy provides a good middle ground here – trading off cost savings against business factors.