This takes a blog entry? "How and why I drive to five different places with the same car!" You can run 50,000 applications on the same server if it has sufficient resources for them.
Well, sort of... but mostly it's not 'setting up from scratch' and instead is a handful of generic configurations for Nginx, etc.
How about repeatability? What happens when you need to set up a fresh dev environment again? Do you do all of this by hand again vs. using Docker or similar tools to build repeatable infrastructure?