It provides newer versions for a few key packages, e.g.: Docker 20.10, PostgreSQL 13, Ruby 3.0, Kernel 5.10, nginx 1.20, PHP 8.0, Python 3.8, Redis 6.2, Go 1.15, Rust 1.47, etc.
Some newer packages, e.g. OpenSSL 1.1.1 and zsh 5.7 are provided in the main repo.
Outdated packages wasn't a major pain point in my experience. The bigger issue is a relative small selection of packages.
These are either available via 3rd party repos (e.g. NodeJS) or EPEL (e.g. libsodium), or by recompiling Fedora SRPMS. That can be an inconvenience, but not a big deal overall.
I hope the situation will improve once AL2022 is out, as Fedora comes with a much wider selection of packages.
I'm surprised to read that. Coming from Ubuntu and in the last couple years NixOS I've found the Yum repos for Amazon Linux woefully stale.