The impacts are usually partial. For example, scaling is impacted but everything already deployed contributes to work up to capacity. Or, you can't change configuration but the previous configuration works as configured. Often surprisingly not so impactful even if there can be limited work stoppage.
Considering how many AWS and non-AWS services go down at least partially when us-east-1 fails, this reads somewhat like "Don't worry that the steering wheel and pedals aren't working, your engine is still running on cruise control".
The problem with the us-east-1 outage is that a lot of big companies are there, so even if you try your best not to depend on us-east-1, your third party providers are most likely there. In my previous company, we were completely down during us-east-1 outage because of other dependencies that are beyond our control.