As for html editors, frontpage, HoTMetaL, and eventually even Netscape itself (in version 3) were very popular wysiwyg html editors released in the mid to late 1990s. There is still innovation in this space as evidenced in this very thread! https://news.ycombinator.com/item?id=33577086
No non technical user wants to think about hosting. Especially in the mid 1990s when home internet was exclusively dialup, what value does holding your one phone line hostage 24x7 to host a web server provide you? So yes hosting has been and will always be the playground of the enthusiast and commercial entities.
Self hosting made sense for academics as they had access to free high speed internet, free electricity and free high speed workstations, as well as the technical know how or easy access to those who could help.