I just don't understand why people seem so drawn to the bad solution just because it ships with the database.
If you are on reasonable storage, I think it is arguable that the main reason you would have to recover is due to a software failure leading to corruption of the PostgreSQL backing state files. Otherwise, you would simply be restarting PostgreSQL on your durable and available storage. So, if the content has been corrupted by bugs, can you trust the recent WAL log in this scenario? Or can a plain dump be a more reliable "known-good" database recovery point?
And what is the business cost to rolling back to a less frequent dump such as nightly? Not every DB is some kind of multi-party OLTP ledger. Sometimes, a day of lost "new data" may be just a day of labor to repeat some data entry or other repeatable work...
A really robust contingency plan probably has both of these kinds of backup, and scenarios where one recovery versus the other is attempted. But if you are starting at a very small scale, hosted on some reasonable cloud storage like EBS, a cron-based dump that goes into a normal hierarchical file backup system may be totally sufficient for the extreme disaster scenario where you cannot simply restart your DB server on top of the surviving and available storage volume?
I'd much rather just do it right though.
Direct attached storage (or whatever storage is fastest / lowest latency for the environment you have available).
Setup pgbackreset or barman, use WAL archiving and setup block incremental backups with a new full backup every so often.
Now you have point in time recovery with very low RPO/RTO, and your database infrastructure can be treated a bit more like cattle instead of a pet, as you should be testing restores often, and this will become part of your yearly major postgres upgrade strategy.
You also get the ability to have a replica for almost free, as replicas can be created from the backup repo very cheaply, and get caught up to the primary without requiring the primary keep around the WAL for a long time. It just pulls it from the repo until caught up.
Any case where you think EBS was the right choice is better handled by having one (or more) replicas and a failover strategy.
Just do the right thing from the start and you save a lot of headaches. People have run production systems already, and have hit the pain points. Why keep hitting the same ones?
I'm all for treating DB as cattle, but your cattle needs to be able to survive long enough.
EBS is expensive but it works for PG. AWS uses EBS for RDS databases. Calling that a 'mistake' is a tall order.