But it is a nightmare when it goes wrong: the conclusion I've reached is that it is out of reach to regular people who don't want the Byzantine support load that could accompany something going wrong. They want turnkey. They want simple. They aren't interested in operating services, they're interested in using them.
The FLOSS model of self hosting doesn't really offer a reliable way of getting this: most businesses operating this way are undercapitalised and have little hope of ever being any other way. Many are just hobbies. There are a few exceptions, but they're rare and fundamentally the possibility of needing support still exists.
What is needed, imo, is to leverage the power of centralised, professional operations and development, but to govern it democratically. This means cooperatives where users are active participants in governance alongside employees.
I've done a little work towards this myself, in the form of a not-yet-seen-the-light-of-day project.
What I'd love to see is a set of developers and operators actually getting paid for their work and users getting a better deal in terms of cost, service, and privacy, on their own (aggregate) terms. Honestly, I'd love to be one of them.
Does anyone think this has legs to the same extent as local-first or self hosting? Curious to know people's responses.