Is the Lightning network possible to run on a bunch of home nodes or will there need to be some bigger high traffic nodes?

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Like lndhubs?

I’m not sure. I have not set up a node or Lightning node. But can you eventually have hyper bitcoinization and nodes run on raspberry pis?

You can run a lndhub on raspberry Pi's, so it is doable.

Combo I think ultimately.

There are larger, high traffic nodes run on cloud servers by both institutions and individuals. This, mixed with individual private nodes is how it currently stands.

You can see this more clearly here https://mempool.space/graphs/lightning/nodes-per-isp

your decentralized payment network runs in centralized data centers

Sure does.