I was in another country when there was a power outage at home. My internet went down, the server restart but couldn't reconnect anymore because the optical network router also had some problems after the power outage. I could ask my folks to restart, and turn on off things but nothing more than that. So I couldn't reach my Nextcloud instance and other stuff. Maybe an uninterruptible power supply could have helped but the more I was thinking about it after just didn't really worth the hassle anymore. Add a UPS okay. But why not add a dual WAN failover router for extra security if the internet goes down again? etc. It's a bottomless pit (like most hobbies tbh)
Also (and that's a me problem maybe) I was using Tailscale but I'm more "paranoid" about it nowadays. Single point of failure service, US-only SSO login (MS, Github, Apple, Google), what if my Apple account gets locked if I redeem a gift card and I can't use Tailscale anymore? I still believe in self hosting but probably I want something even more "self" to the extremes.
Cheap vps servers 1 gb ram and everything can cost around 10-11$ per year and using something like hetzner's cheap as well for around 30$ ish an year or 3$ per month most likely while having some great resilient numbers and everything
If anything, people self host because they own servers so upgrading becomes easier (but there are vps's which target a niche which people should look at like storage vps, high perf vps, high mem vps etc. which can sometimes provide servers for dirt cheap for your specific use case)
The other reason I feel like are the ownership aspect of things. I own this server, I can upgrade this server without costing a bank or like I can stack up my investment in a way and one other reason is that with your complete ownership, you don't have to enforce t&c's so much. Want to provide your friends or family vps servers or people on internet themselves? Set up a proxmox or incus server and do it.
Most vps servers sometimes either outright ban reselling or if they allow, they might sometimes ban your whole account for something that someone else might have done so somethings are at jeopardy if you do this simply because they have to find automated ways of dealing with abuse at scale and some cloud providers are more lenient than others in banning matters. (OVH is relaxed in this area whereas hetzner, for better or for worse, is strict on its enforcement)
For something like a website I want on the public internet with perfect reliability, a VPS is a much better option.