It wasn't entirely irrational. There are many genuine cases for the public cloud. The problem is groupthink and FOMO. Also, people are migrating from the public cloud and the other way round each day, but the cloud companies amplify user stories only from the latter, so you may get the impression that everybody is there so if you don't, you are doing something wrong.
People do move away from it as well as some discover how much more reliable self-hosting can be if you ever did need enhanced support. And it is often cheaper too, sometimes very noticably.
There are applications for the cloud, the services are decent in most cases. Personally I noticed that I had to do less maintenance with hosting myself (yeah, yeah, technically I still run it on machines in data centers).
