The target audience as I understand it is companies that have gone cloud-only or close to it and are big enough where moving workload on-prem makes financial sense.

They can migrate to an Oxide "cloud" without too much difficultly as opposed to procuring, installing, and maintaining the rube goldberg machine you mentioned.

They also attract interest among the "we don't want to touch cloud" organizations where trying out $1M in hardware is a rounding error, but I don't know how much traction they'd end up getting.