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I think we're also kind of lucky in Europe to have such a thriving market of large baremetal hosting providers (Online, OVH, Hetzner, ...). The culture seems different in the US, maybe because the pricing is less enthusiast friendly.
Yeah, the price range for dedicated servers has really gone down over the years in Europe. And yes, the cloud makes sense for light dev environments (especially "just use the smallest instance" if your stack does not have huge baseline bloat), if you don't forget to stop them.
But since dedicated servers can do VMs and containers, you still come out on top if you can easily use that instead, depending on your stack :-)
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