We had started off as a self-hosted project, but ran into difficulties monetizing that model. We wanted to pay our rents, and continue working on this, and an E2EE SaaS was a way forward.
We are not averse to supporting a self-hosted version in the future. But that commitment requires engineering and support bandwidth, which we don’t have right now.
In my opinion open source software benefits greatly from first being closed sourced and commercially backed with an OSS release coming in the future after stability has been established.
Also, self-hosted consumer products are hard to sustain profitably. Avenues for monetization are low.
Given that our long term target audience is people like my parents, we did not see enough value in investing in a self-hosted variant, and wanted to reduce the number of distractions.
This is not to say that we are against the idea of a self-hosted variant, just that it is not a priority for us right now.
Also the phrase "ente has an open architecture and source code that has been peer reviewed" that can be found on their website follows a dark pattern: hey, look we are open but not really.