There is no magic. The purpose of virtualization was to decouple software from hardware, thus making the software durable and easy to migrate. Physical vs logical as you kind of touched on. Yet still to this day we have companies deploying entire code bases to multiple regions AND disaster recovery sites in active, active, passive setups AND still requiring antiquated tape backups AND now with the added bonus of paying exorbitant premiums for "virtualization" of cloud based hardware and services that always have to be on so they can sync but somehow dont count as backups. And new white papers and nomenclature and buzz words furthering the grift every year.
Maybe I was being coy, or perhaps obtuse?
So, do answer this with a substantive answer or with the kneejerk answer? My first reaction after reading this:
Virtualization was going to make it easier to migrate from hardware to hardware, and guess what? IT IS. VMware has saved everyone thousands and thousands of hours moving guests around hosts in the early days, and now everyone has Azure and AWS accounts that can spin up servers and install apps at the drop of a hat. You can have a server built for pennies in minutes that would have taken days on hardware that would have cost 10-100s of thousands. I managed a Data Center. While nothing beats racking a new 3U server over my head without a lift, virtualization has made it so many businesses don't need or want to be in the DC business any longer. Data Centers have consolidated, X As A Service has grown exponentially: Platform aaS, Compute aaS, Software and Infrastructure obviously, it's a huge list.
EDIT:An added benefit that I directly see in my line of work is the number of Major Incidents we used to see raised from crashed servers brought off line by hardware failure has been dramatically reduced. Every critical app, no matter how well architected, even those with big iron servers with HA pairs, etc, suffered when inevitability struck and a hard drive went down or a fan failed. RAID arrays suffered enough losses and then BOOM. Now that has been moved to large SAN clusters, guests shuffled around on huge hosts or in massive Azure or AWS farms which we pay for as a service rather than having direct control (or have to maintain), 5 9's is an expected SLA that is readily achieved. THAT is a promise on which virtualization handily delivered as well, once applied at scale.
I don't think "obtuse" captures the nature of our disconnect.
I really don't get ultimately what you are complaining about: Is it that people/businesses feel compelled to do more now than they used to in the past as technology extends capabilities, or that the prices of this layering is more expensive than you think it should be, or that people are adding terms to refer to different technologies and strategies as they come into use?
Help a brother out.