For these kinds of services, I think the main value would be UX improvements, such as offering an environment preconfigured with a certain set of tools (e.g. nmap, tmux, curl, etc.) and other defaults. SSH in, and don't deal with a web panel. They may also be valuable in a learning environment where you don't want student servers running 24/7.
Other than those points, offering access to more powerful hardware is probably the best use-case.
What you've described sounds a bit like the very new https://exe.dev service! Which I discovered on HN just weeks ago.