But you still have all maintenance related problems? How do you upgrade a hard disk or memory, go to their home? What happens if their home net is down or slow, no one can visit the site? Back in the days I was running a few web servers from my office directly, and it's a lot of extra work that is just not worth it.

There's still plenty of room for paid hosting services. But this lowers the bar in a major way.

If their home network is down, hopefully their office network isn't, or their business partners' networks aren't.

Also, these kinds of applications are practically begging for mesh networks. So what it means for a home network to be "down" could change a lot in the coming years.

Who cares?

The Internet is breaking all the time anyway. Every day at least one of the bigger / more important sites I visit has a temporary problem with something. Three days a week HN keeps returning CloudFlare errors to me. Even Facebook has some issues that break it every other week. The world isn't ending because of this, and it isn't going to end because the site I co-host with my other friend is down for the night.

As you grow to the point where close-to-perfect reliability matters, you'll be able to afford to get someone do handle the hosting for you, just like you do today.

Not denying you get these issues or errors with sites. But how come I never seem to have any issues with major sites. I do see cloudflare stuff. But never for a top 1000 site.

Why would you need to upgrade a hard disk or memory?

Have you ever worked in a datacenter.

How many datacentres does the average "small local business" have?

For the price of hardware we're talking about, it'd just get replaced.

Let’s imagine a real path to market: some big 5 company offers a “Facebook accelerator” usb compute stick that you put on your network and it provides local access and resiliency.

You are trying to communicate a wonderful message with an extreme amount of vision to people who sling code and do devops all day. What many of them may hear is you are asking them to do a bunch of work. But if you think 10-20 years in the future, your server was running something like a Phoenix type environment, then scaling wouldn't be as much of an issue. There are ways that updates and other problems can be abstracted away in a non-cloud environment. There are ways of running lean technologies on commodity hardware for servers.

The bottleneck I see is bandwidth and government regulation of the electromagnetic spectrum. If Amit Pai gets his way then what you are talking about will be much more difficult.

My roommates are all self employed musicians/artists, dependent on cloud services. So yeah I'm thinking about their business needs!