Literal self-hosting is important because without it you don't have any real control. Yes, laws can compel cooperative companies to treat you well, as long as someone is enforcing it, and there aren't bugs. Yes, it's important that we have these for things which cannot be self-hosted. But if a self-hoster wants to be forgotten, they can microwave the hard drive and have no doubts about whether the data was deleted.
I predict self-hosting will become much more popular as we get local AI's that are able to deal with the complexity. Or, we use them to build simpler systems that don't require so much complexity. What if the AI betrays you? Well, run three different ones that watch each other.
Self-hosting isn't an "solution", it's a philosophy.