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It's not that much headache, and this isn't necessarily about public-facing sites and apps.

Take file storage: Some folks find Google Drive and similar services unpalatable because they can and will scan your content. Setting up Nextcloud or even just using file sharing built into a consumer router is pretty easy.

You don't need to rely on Cloudflare, either. Some routers come with VPN functionality or can have it added.

The self-hosting most people talk about when they talk about self-hosting is very practical.

I don’t think you understand what on-premises means.

Some of us have have LAN for our offices and TBs of data.