Cloud Compute Engine VS VPS

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Today I set up my first VM instance on Google Cloud Platform. I wanted to install a simple lampp server with apache, php and MySQL. And this is what I have done (ssh and a bunsh of apt-get install).

Everything works fine!

Now I heard that these instances are suppose to be scalable, which means if I have 100,000 http requests per second on my server it shouldn't lag.

So why do I need to select the RAM to install on my VM instance (shouldn't I pay according to the resources my VM use)?

Because I chose 2Go but will my instance be able to serve the 100,000 http request per s?

If not, what is the point to choose a VM instance instead of a VPS or dedicated server (because I can also choose my RAM on these solutions)?

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