"...having convinced themselves they are the companies who know best"
Well, good luck with outsourcing the business itself and all the mitigation of operational risk to someone who knows nothing about your business(in the case of Netflix and others). This in itself underpins the 'good luck' service that customer can (and do) expect of technology services. Yes it's cool and yes it works and yes it's cheap, but much like life insurance you don't 'get' any value from it.
All the cloud providers effectively own the risk of a huge and growing number of services (some commercial, some public). So you can expect issues like the ones outlined here beginning to impact the otherwise rock-solid government services like 'UK Passports' to be heading the same way.
Like most clouds, there one minute, gone the next.