The most common reason for a Cloud VPS project to request a floating IP (sometimes called a "static IP" or a "public IP") is to support the use of a custom "vanity" domain for their webservice.
IPv4 addresses are a scarce resource. Name based virtual hosting including SNI for use with TLS have been invented in part to allow hosting services such as Cloud VPS to consolidate many webservices behind a single IP. Bypassing the Cloud VPS shared proxies also creates new PII exposure for project maintainers to deal with in the form of visitor IP addresses in their webservice logs.
A more ideal solution than handing out IP addresses would be support in the Cloud VPS proxy service for using a custom domain. I think it would be reasonable for this to require some amount of administrative review and support. There may certainly be more adopters if the process was easier than it is today, but I would honestly be surprised if it resulted in more than 1-2 new domain setup requests per month as a worst case.