Depends on the server. Some server software can be easily scaled horizontally. For them what you proposed indeed can be a good deal. Other things, like RDBMS s

Depends on the server. Some server software can be easily scaled horizontally. For them what you proposed indeed can be a good deal. Other things, like RDBMS servers, can’t do that or at least not so easy. For them you actually want loads or RAM in the servers. I don’t think it’s practical to manufacture SOCs with hundreds of GB of DDR4 in the package. The package gets too large, also economy of scale is not that great compared to phones or laptops.