i think cloud providers have little incentive to help you develop and test everything locally, since they benefit more from onboarding you quickly into using their infrastructure, which they can much better monetize on. it seems to me that a completely local cloud stack would be threatening to cloud providers also in that you can then start running non-critical applications on-prem at no cost.
i don't think that's a real threat -- i don't think development environments are likely a huge income source for them, either.
i think they'd be better served by letting me develop more quickly, so I can help my company grow, and presumably need (and have the budget for!) more resources in our production environment.
if i'm mistaken, i think it's reasonable to have some sort of built in time limit to how long the appliance will run for, or some other way of preventing it being used for non-development purposes.