Paying for the resources you consume instead of paying for capacity you're not using isn't a bad pricing model. Although I prefer HP Greenlake's model over AWS.
But in the context of consumer product pricing it's wildly anti-consumer to bill a software running largely on your own hardware consuming your own electricity based on how long you run said software. It's expecting consumers to accurately project and plan their usage which consumers are pretty famously bad at. It's also expecting consumers software running on consumer hardware on consumer home networks to function as expected, and all of the three are famously unreliable and janky
The AWS model works so well because of intense automation in horizontal and vertical scaling plus technologies like Kubernetes, Ansible and the entire automated build pipeline. But most importantly it relies on a full team carefully designing the automatic deployment and scaling to maximize benefits and minimize costs