I think this is short-sighted - there are many applications where a single node is all one needs, and this is a huge part of Hetzners user base, presumably.

A bit of anecdote from me, as a decades-long Hetzner user: I have personally felt no real impact whatsoever with their internal network suffering from intermittent failures. The downtime incurred by Hetzner admin I've experienced is measured in minutes, in my case over a 10 year period as a customer...