The power company is massively consolidated, as is the water supply, telephone service. These are monolithic, monopolistic entities. But they are also very reliable (failures are usually isolated by region, or a result of natural disaster).

What leads to more failure is when you don't engineer those consolidated entities to be reliable. Tech companies have none of the legal requirements or incentives to be reliable, the way physical infrastructure companies do. I agree that the tighter integration is an issue, but the root cause is tech companies have no incentive other than profits. If they're making profits, everything's fine.