Should a server really be just an appliance? Servers must be kept up-to-date with the latest security updates, etc. Appliances are plug in and forget.
In addition, at my day job, we often re-purpose servers for various uses. A non x86 server would severely limit our options when it comes to this. For example, when we outgrow our current database server, we can purchase a new one and utilize the old one as a standby web server, development server, or something similar.
You seem to be flaming this a lot. Let me clear the air for you.
1) 100 million ipad users is NOTHING. A large portion of both fortune 500 companies as well as non fortune 500 companies utilize Amazon Services in some form or fashion. We are talking far more than 100 million users here.
2) Apple utilizes BOTH Amazon AND Azure for the storage of files (and files only).
3) If you happen to work for microsoft (or own shares in microsoft), please note that Azure is strictly windows and strictly Microsoft. This website is more linux oriented, and a LARGE portion of servers out there are NOT Windows based (I don't have the exact numbers, but i dare say that Linux, BSD, etc have the dominant position in the market. That alone makes Microsoft the minority in cloud computing.
So you can understand now why everyone says there is nothing running on it. We don't even run our (microsoft shop) on Azure, simply due to it's restrictive nature. We utilize the much more open EC2 platform.