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Thats not how many (most?) breaches occur. The situation you would run into (and worry about) is that an exploit is found in the software and then it is mechanized so that things like google app engine and heroku are scanned and user run versions exploited in mass. Open source does not prevent that, only diligent operations do. So by self hosting your are making the bet that you are doing that singularly more competently than the hosted version.

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No, open source does not prevent anything. There is just more transparency.

Any self hosting would need to be fully connected with automated update notifications from the "crowd" of contributors and reviewers.

I guess, it becomes a managed service at that point (since as you point out it should have reliable and secure production characteristics which does require a high level of competency). I am imagining a cloud of one for my passwords (a stateless, secure container, with disabled user access to the OS and which connects to an encrypted simple file store to keep my small sized but precious passwords).

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