We use SQLite for storage of all things. The entire application lives on a single machine.
OurApp.exe:
SQLite <-> C# Services <-> Razor Components
When you have a stack like this, Blazor goes into additional dimensions of productive. Every F5 of the app is a complete stack running without any frustration in setting up databases, containers, message buses, etc. None of the concerns regarding scalability apply when you plan to go vertical.
I would not currently argue for developing blazor server apps as a replacement for 100% of web applications. But, there are situations where you have a constrained user base and predictable performance characteristics which provides enough confidence to go all-in on a single fast box.