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When the Gatekeeper validatingwebhook came up, I was really worried that'd be the issue! Regardless I'd recommend anyone who cares about their cluster not collapsing to change the gatekeeper webhook to only intercept resources you care about: https://github.com/open-policy-agent/gatekeeper/pull/1806
Outside of on-prem cloudy offerings like Azure Stack, AWS Outputs, or Anthos, a lot of the on-prem platers have IaC for example Rancher has a Terraform provider and many of the other toolings utilize the Cluster API. Like there was a cool Kubecon presentation on Tinkerbell with it.