The interesting thing, to me, is not the overall cost of hosting, but the new ways that we can host.
I've got a current project that I'm working on. I have no idea how successful it will be and I'm not interested in putting a ton of my own money at risk to see if it will be successful. But using a model where I have zero of my own servers (Lambda, API Gateway, Static hosting) means my fixed costs are under $20/mo and my variable costs scale with usage. All I need to do is ensure that my per-user monetization is higher than my per-user cost and my application scales up without any effort on my part.
In the era of hosted servers, capacity planning and scale out took a ton of my time and energy on projects like this. And while I might end up paying a bit less in the long run if I followed the same methodology today, not having to worry about that kind of stuff and being able to focus solely on the application is really nice.
Hosting web applications costs a fraction of what it did 5-10 years ago, both in terms of straight costs as well as operational expenses.