I agree with many of your points. People should learn to live a hybrid life. Cloud and home servers, with offsite backups of both datasets when possible.
I actually made an episode about this last year called You Need a Home Server.
It’s not feasible at this time to have the masses unplug from the cloud and go to a home server setup. More tooling is needed for that. I think a sweet spot could be encrypted cloud computing that handles sync and collaboration among users, with home servers and clients performing the encryption auth. That’s not totally possible yet I don’t think, but it could be.
https://podcastindex.org/podcast/6165928?episode=15926135181