cloud is great for startups when you have no idea about your infra needs. once you figure it out you should move to bare metal. but the honeypot nature of cloud is the comfort and ease of use. people get comfortable and decide to not bother with switching and that will bite them in the ass in the long run with insanely high bills. and some will be way too deep to even be able to switch(due to their code base being too dependant on the cloud infra or too expensive to refactor) so they will get stuck there. cloud is a trap if you are not careful but great to get things going.
