> Why do people use password managers that store all the data on their own servers?
> sync your password database to DropBox, Google Drive, iCloud, etc.
So instead of storing it all on one service, store it on one out of three others?
Yes, you can set up your own hosting etc., but 1., will your average user do that, and 2., will they be able to maintain an adequate security posture of their self-hosted server?
Besides centralization being, as always, hard to avoid in practice, having a password-specific storage service also has several advantages over a generic "bucket of data" cloud drive.
For example, I'd expect a (competent) provider to invest some resources into
- Server-side deletion when I change my master password (cloud storage often keeps file versioning around for extended periods of time)
- Access logging, i.e. making sure that it is architecturally very hard to download my encrypted vault from an unknown device without triggering some sort of after-the-fact notification to me
- Limiting API and service attack surfaces, i.e. not offering their storage as part of a suite with other services that have different threat models, such as photo and video storage (accessible to backend batch jobs to rescale/reencode the media for multi-device viewing etc.), data sharing and others