Which in hindsight seems extremely naïve. Files are just too damn useful a concept. Their main rival, databases, have a bunch of peculiarities that limit their generality. When people want to share information any longer than a paragraph or two, they send a file. You can’t beat files!
Of course ultimately the distinction between files/filesystems and databases is not that clearcut; I'd argue that in many ways filesystems are just databases promoted at kernel level.
That's what cloud providers want. I think users don't care and prefer whatever is the simplest and most reliable method. Cloud resources disappear all the time which tends to make a lot of users upset.