I have looked at 2018-2016, where the expenses are almost completely the main pycon and more local pycons. Also sponserships like "Pallets group, which maintains projects such as Flask and Jinja" (2018). Everything other than the main pycon is less than 1 million dollars combined in expenses.
I feel it is important to look at the facts, not just vibes.
Those are "fiscal sponsorships" meaning the PSF holds money for other organizations. The PSF is not funding Pallets (or Boston Python or North Bay Python, etc, etc). They accept money earmarked for those organizations and provide administrative support. Details: https://www.python.org/psf/fiscal-sponsorees/
A portion of pycon expenses are spent on outreach and teaching during the event. Arguably all of pycon is outreach. There are dedicated grants, aid, support as well. The 2019 PDF breakdown doesn't seem to be available any longer.
As we all know, Astral stepped in and solved the problem for them. I moved to their tools as soon as was possible. And not simply because they were fast, but because they work.
I feel it is important to look at the facts, not just vibes.