The biggest issue with this is when you deploy multiple applications to a server (e.g. 5 apps on IIS or whatever) and one of them kills off the box when it behaves badly. You can auto-scale, but it takes time to provision new machines and until they are up, you are down. Once you've experienced this a few times, the desire to split out applications into micro-services gets pretty strong in order to limit the blast radius.
Agreed, but if you are running on micro-services and an app crashes, you don't lose everything (hopefully). It's not enough to make me want to use micro-services everywhere, but it is a consideration.
I'd like to see things work on Erlang/Elixir in Production and whether that works better, since the BEAM is very good at preventing individual processes from dominating the server and is also very good at recovering from errors.