It is all relative.
For example, in our small team, we destroy our entire staging environment and perform complete restore from backups once every month or two. We also use the production backups for restoration to verify that these are working in a separate environment. I deliberately get someone that hasn't done it recently to check the documentation is correct and everything works. Given that we also have the git repos and source on multiple dev machines also for everything, the worst case data loss is from a dev not committing regular changes. But everything is tested, and I believe regularly enough for a team of 10.
If I was hosting thousands of peoples data, I'd expect a more regular testing of the backup and recovery procedure. The can never have tested it with production data as they have no working backups. That is just incompetent.