Would you choose multiple Droplets or would you scale a single Droplet

Suppose I have customers using my web app, and there’s no overlap in customer data, so no shared database is required. This means I could spin up a Droplet for each customer.

Seems like there could be a number of advantages:

1. No single point of failure that would bring down all customers ( assuming all the Droplets don’t reside on the same server ).
2. Better security since each customer is on their own Droplet. One getting hacked into doesn’t put the other customers at risk.
3. Easy to add resources if the needs of one customer grows

I’d think the tradeoff of this approach versus a single high capacity server might be administration overhead ( and possible additional cost ) of multiple Droplets.

Has anyone looked at this tradeoff and decided why one approach might be better?