This is the reality IME. I'm currently in an org that has been "in the cloud" for over ten years but is only now architecting (some) new projects in a cloud-first way. Meanwhile there is big pressure to get out of our rented cages so there is even more lift-and-shift migration happening. My guess is that we eat roughly 5x as much compute as we would need with proper scaling, and paying cloud prices for almost all of it.