I completely agree with you from a business standpoint. But I think the reasoning that nostr:npub1l6scds4yv7xmcsmhqnhdy9sggm520q09lvts2m5mkvecgr2mmmeqsuj5rc has is also valid from a consumer's perspective. It's very Bitcoin-esque to begin questioning the centralization of all digital aspects of your life, not just money. However, from running an EC2 server myself on AWS, the cost effectiveness, reliability and performance is unmatched. That is not to say that self hosting as an individual for your own private files has no substance. But rather we must be clear on what makes sense and what doesn't for cloud computing.
Discussion
I thought I made it pretty clear that I was talking about my own individual perspective and concerns about average people doing this today.
It turns out that not every human on the planet values the same things. Some of us are and will be willing to make certain tradeoffs. Hardware also gets cheaper over time, so what is too expensive today won't be in the future. What is technically hard today won't necessarily be in the future (which is why I commented on this becoming easier for average people in the future).