You're right, even though I did have a good use-case for them. Back in 2000-~2020 I built a "boutique linux hosting" provider, and the Supermicro "Twin^2" servers really fit our use case. We were mostly serving small dedicated servers and were very price sensitive.
Loved the idea of blade servers, but they were targeted to people who needed very high compute in small footprints, and we both didn't have high compute requirements and were power/footprint constrained (we could get more power but cost/watt would go up because of cooling density).
The Twin^2 was nice because it amortized the cost of redundant power supplies over 4 machines, but didn't have the cost overhead of big backplanes or fancy layouts to get a lot of CPU+RAM in a small physical space.
Once populated a 4 node chassis was around $750/node including CPU and RAM and 2x SATA drives, it was within $100 of the price of a similar 1U server. We had around 10 cabinets in a data center when I left the company. It was, IMHO, a pretty good deal to get a dedicated box with 24x7 monitoring and sysadmin services including updates and backups at $150/mo.
Aside: we were also one of the first VM providers, I see on the Wayback Machine we were offering it in Feb 2005, predating Digital Ocean by at least 6 years. I've regretted not marketing and selling that service much more widely. It was a side project and we had a lot of irons in the fire at the time, so we didn't focus on it very much.
It was implemented with User Mode Linux, a Linux kernel ported to run under Linux instead of ported to a bare machine. A crazy idea, but it worked REALLY well. I remember finishing up the sign-up and billing software on the plane on the way to US PyCon where we announced the service, though I don't remember the year.