It's definitely true that we've been more focused on technology than market research, and that this is a huge factor in why our business didn't work.
However, I don't believe you can really make revolutionary changes based on the "lean startup", "do lots of market research and test everything with metrics" strategy. It's absolutely a great way to make incremental improvements -- even big ones -- but not paradigm shifts.
Sandstorm's vision is a long-term one, and it actually isn't primarily focused specifically on self-hosting, privacy, or even FOSS, but rather on creating infrastructure that allows decentralized software to stand on equal or greater footing compared to centralized services. There is a lot of work that needs to be done for this to function, and you can't justify it by saying "look, these customers asked for it" -- you justify it by laying out the vision and saying: "Look, there will be these clear enormous advantages if this works."
For reference, here's our technology manifesto: https://sandstorm.io/how-it-works
This is always a tough sell, because people rarely agree on hypothetical outcomes that can't be measured in advance. And if it were clear, someone would be doing it already. So, I don't expect you to agree. But I'm going to keep working on it.