The hype for serverless cooled after that article about Prime Video dropping lambda. No one wants a product that a company won’t dogfood. I realize Amazon probably uses lambda elsewhere, but it was still a bad look.
I think it was much more about one specific use case of lambda that was a bad fit for the prime video team’s need and not a rejection of lambda/serverless. TBH, it kind of reflected more poorly on the team than lambda as a product