Lambda’s concurrency model has its advantages (below) and the power of pay-per-use pricing is underappreciated. I’ve done a whole talk on how it can be such an advantage to know how much each transaction costs you. Others have also written about it too, see here, here and here.
From a technical point of view, the biggest strength for Lambda (and therefore weakness for Nuclio) is the rich platform integration. Think all the push-based event sources (that don’t support HTTP integration) such as S3, CloudWatch events, Cognito, Alex and many more. Without a polling interface or the ability to integrate via HTTP, then you won’t be able to use event sources with Nuclio.