I'm an outsider who used to work at a different cloud provider, so take this with a grain of salt, but this doesn't smell like a limits and provisioning problem, per se. It's not necessarily like they just had 1 too many emails tip the scales for the entire world. Until today stuff was running okay. This was a monitoring and fail-over problem, at a comically tragic scale - a cascade failure. Architecturally they obviously did not design for a world where they could damage control failure at this scale. Failure should be expected and designed for at literally every layer. They cheaped-out on careful design in order to play catch-up building a public cloud offering and here we are.
But even this requires someone high up in the organization to have the insight that reliability requires some level of “inefficiency” — ie retaining certain highly paid staff, duplication of effort, over provisioning of resources, etc.
The irony is that the execs who could make those decisions are convinced that LLM tools obviate those needs, and shift all spare resources in that direction. But without heavy constraints from experienced humans, LLM tools will only multiply the complexity at the root cause of these sorts of outages.