This looks very cool, but seems ripe for some ugly emergent behavior to appear.
Many concerns are removed from my application code and build and deploy systems by Lambda and API gateway.
You just throw some zip files in S3 and you have a web service.
No more image registry, container orchestration, load balancers, AMIs, autoscaling, etc.
You also get to remove things code around CORS, auth, polling etc. from your app.
I have a bunch of writing on how FaaS makes things easier here:
I run a web hosting service, and while my application code is a bit more complicated now, I don't have to worry about monitoring ec2 instances, process managers, and that's worth it. That particular trade of is worth it.
If you manage an application with a high level of application logic, such that keeping servers alive is relatively simple, maybe the calculus works out differently.