No, they just don't know what value AWS provides. And honestly you'll never know until you roll out your own Dedicated servers and later you'll wonder why you never did it sooner.

Probably most are overpaying.

Cloud used to be marketed for scalability. "Netflix can scale up when people are watching, and scale down at night".

Then the blogosphere and astroturfing got everyone else on board. How can $5 on amazon get you less than what you got from almost any VPS (VDS) provider 10 years ago?