Yes I agree. I, for one, plan to offer to host some of my good friends on my own VPS, along with my instance. (Diaspora, not AppleSeed.)
I'd be interested to hear why you're more interested in hosting Diaspora instead of Appleseed?
My straightforward answer: because a bunch of my Facebook friends seem to be looking forward to moving to Diaspora and I doubt any of them has heard of Appleseed.
It's possible that in a couple of months Diaspora will look a lot less like a Great White Hope. We will see.
When I said "Diaspora, not Appleseed", that was meant as clarification of intent and not as a refusal to host Appleseed instances.
That said, I'll only use Diaspora for myself, but that's based on personal preference.
I know Ruby like the back of my hand and am comfortable with Rails. Also, my site's built in Rails, so Diaspora will probably integrate nicely.
I've always thought the distributed social site concept had room for both those people who want to run things themselves and for service providers. Kind of like wordpress.