Self hosting is a scale. But the point is you have the ability to host it how you want. Whether that be on a cloud service that you just throw a docker container at, to a VPS with root, to a bare metal machine co-hosted, to in your basement, the choice is yours.
Pedantry aside, yeah that seems expensive given the amount of convenience offered. But much more convenient than setting up a server in your basement with a UPS and external backup drives and such.