Yes you're right about the logical decoding, thanks for clarifying and I'll make sure I update the docs.
For Supabase (when we finally have sign ups), the idea is that you can BYO postgres, or we will host. If BYO, you would have to set wal_level = logical, and create a publication for us to listen to (eg: CREATE PUBLICATION supabase_realtime FOR ALL TABLES).
We will host the middleware which will give realtime and restful api. The idea is that you focus on your database schema and we handle the rest.
Still early days though. We are just trying to find our feet, including figuring out whether this is even something people would want