Cloud providers make their money with the high bandwith costs. I can get 10 gbit/s line for ~$3,000 a month with a dedicated server. That's 3 PB of data and according to AWS cloudfront calculator it would cost ~$90,000 with them...

So yeah, people get ripped off, just like with SMS in the past. Most don't know this or think it's fine, because "cloud" has benefits that justify the costs in the end ("I don't have to pay for sys admin!").