I've been through datacenter power outages, refusal to renew, and difficulty in getting circuits in a timely manner in multiple Tier 4 datacenters.

Self-hosting is only as good as your planning, strategy, and execution, which is much the same as the cloud world. You're probably safer running a single EC2 instance than running a single dedicated server in some random colo, but certainly running your own geographically distributed infrastructure is likely better than relying on a single AWS availability zone (for example).

However, it's a great idea to open up peoples' eyes to the idea of how being on a major cloudy provider can make you collateral damage of an attack that never would have targeted you if you were in DIY mode.