I’ve self hosted long before the privacy/subscription nightmare of modern cloud/SaaS platforms was a thing. I do it because I enjoy it (and at the time I got started, I had crap internet so having good local services like offline Wikipedia was important).
Not everyone has to self-host. I run lots of services, mostly for myself, but friends and family who don’t know a kernel driver from a school bus driver also use them. So the expectation that everyone self host is and always has been “pie in the sky”. And that’s okay.
Privacy regulations are all fine and dandy, but even with the strictest ones in place, you still do not own or control your data. You’re still subscribing to services instead of owning software. You can’t extend, modify, or customize hosted software. Self hosting FOSS applications addresses all of those.
So rather than expect everyone to self-host, we should be working towards communities offering services to one another, pooling resources, and letting those interoperate with each other.
To make fun of an old moral panic in the 90s: “It’s 11pm. Do you know where your data is?” Yep, it’s down the street in Matt’s house.