This is true, though of course without that requirement, Sandstorm wouldn't be able to do what it does.
More broadly, I think the challenge we have today is that we've settled into a local maximum way of doing things that we call "Cloud Architecture" and "Software as a Service". The industry has spent many billions of dollars exploring and optimizing this approach. Even open source developers are designing their little apps using hyper-scalable techniques because they think that's what they're "supposed" to do -- never mind that such architecture is actively hostile towards small-scale self-hosting.
I think the Sandstorm approach -- which is essentially "distribute apps to people's personal servers the same way you distribute apps to phones today" -- would be vastly preferable (both to users and developers), if it had the same level of development and investment.
We can't just invest $100B upfront to build the new world, so instead we need to find an incremental strategy to get there. That's the hard part. Sandstorm tried to harness the investment already being made by "indie" / open source developers. We got a long way with not very much money! But the indie motif didn't exactly give us enterprise credibility, or any other way to sustain the company.
My new hope is that "mainstream" cloud infrastructure will push towards being incrementally more and more decentralized on a technical level, because of the technical advantages that brings... If your software is designed to run as a million little servers rather than one huge one, then a company like Cloudflare (my current employer) can go deploy it to literally hundreds of locations around the world for huge savings in latency and long-haul bandwidth, better reliability, etc. Then once apps are designed that way, maybe, just maybe, it'll be easier to flip control of code execution and data away from the vendor towards the consumer? But obviously there's a long way to go to get there.