Yes. That is an other valid path to use. And you get pretty far with a medium single VPS as well, I mean it is unlikely your little app is going to be another Amazon over night. Starting on a VPS and then adding more, until eventually you might need automatic scaling is all fine.

AWS (and others, but I have used AWS the most) charges quite a bit of a premium but they package it for you. But there is also a big risk of vendor lock-in. Everything is configured for AWS, if they yank up the price you either have to spend a lot of time and money to migrate, or just pay up.