To the OP. I see several problems to your proposed solution.

1. You are assuming that cloud service providers have sufficient capacity sitting around and available to cover the game and all thhe players worldwide. Don't think so.
2. As this game iks considered to be global and players can move from region to region the cloud service needs to be uniform in structure to allow for the smooth transfer of player information. This is highly unlikely
as each region has its own standards

The only thing I somewhat agree with you is that SE needs to shoulder their fair share of the blame and stop placing sole responsibility on the players and their ISPs. If their systems where up to snuff the occasional loss of packets
would have no effect on service....or are they telling me that once we are in game we never lose a packet?