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Maybe this is a dumb question, what would be the most common use-case for this?

Any company that are not allowed to share code with third parties either by internal or customer policy. This should be a lot of companies.

Or just not wanting to live in a surveillance-first, service-first world.

Well, do you prefer services over inspectable code you can run yourself? I don't. In fact, I strongly dislike having to rely on services.