No, but they make many availability issues Someone Else's Problem.
When EC2 goes down, I need to maybe wake up and log in to see what happened. I see that all of us-east-1 is down (again), notify everyone involved: "It's down can't do anything, it'll come back up when AWS engineers get to it" and go back to bed.
I can check up on it again during office hours.
If this was a colocated server, I'd need to drag my ass out of bed and drive to the site to see what's up.
Drive to a colo? Most colos have 'remote hands' where you can have an onsite tech do stuff for you. There's also OOB management tools you can use (assuming the hardware isn't toast).
AWS is really expensive if you have the skills to managed hardware yourself.
Remote hands are expensive, and in my experience in using them at DC's all over the world, they're also not very competent certainly not to the point of being able to diagnose and fix issues for you. The best you could hope for with them is normally having them get OOB working so you can do most of the work yourself, and maybe try to swap some hardware if you can provide them documentation on EXACTLY what to do.
Remote hands are often contracted from online marketplaces for such people. I do this occasionally as it's easy money. We do exactly what you tell us to do without any insight into why we are doing this. My objective is to be on-site for 15 minutes and get you back into your equipment. It occasionally takes up to 2 hours to just get past the datacenter security. The most useful docs are a series of pictures on your equipment with labels. It is also helpful to tell us how to safely disconnect uncommon connectors.
Well, we're also at a position where "You won't be fired for using Amazon". Suggesting colo at all gets you the same looks and derision suggesting PostgreSQL used to.
It makes the availability issues largely someone else's problem.
If YOUR server(s) go down for whatever reason, you're getting up at 3am and driving to the data centre to put the fire out assuming you know how to troubleshoot the issue (lets face it, most Devs probably don't since its not their specialty), and have the means of fixing it (failed RAID card? Hope you've got a spare). Then theres the headache of when the data centre is on the other side of the world - get ready to cough up hundreds of dollars to wake up remote hands, and try to get them to do the work for you (probably pretty poorly).
If AWS goes down at 3am, you simply roll over, go back to sleep and have another look when you wake up.
Of course this does all depend on the software, cloud infra being built sensibly but the same also applies for "on-prem" solutions as well.
There is plenty hybrid approaches. You can have cloudflare loadbalaner and enough redundacy to roll over and go to sleep. I think you would have less outages with dedicated hardware than aws control plane. For some compute or IO intense workloads it would make sense to self host.
