Compared to a VPS there's some security benefits. You can't meaningfully encrypt the disk of a VPS - as the decryption key can easily be read out of memory by the host.
A physical server offers slightly more protection than this - although if there's no TPM not all that much.
VMs are also bad at some specific tasks - they have issues with clock accuracy for example.
One appeal of ARM, specifically, would be that it's cheap. Sadly these are based on ARMv7, which is a lot more limited than aarch64/ARMv8 and Intel CPUs. - but hopefully they or someone else will have an ARMv8 offering out soon.
VMs are also bad at some specific tasks - they have issues with clock accuracy for example.
One appeal of ARM, specifically, would be that it's cheap. Sadly these are based on ARMv7, which is a lot more limited than aarch64/ARMv8 and Intel CPUs. - but hopefully they or someone else will have an ARMv8 offering out soon.