There are hobbies we do out of pure enjoyment. E.g. for me personally this is (choir-)singing. I know so many people who are better singers than I am (or ever will be) yet I couldn't care less. I am 100% happy with my skill level. If anyone else comes to the conclusion that somebody else is a better singer than I, they're probably right!
Then there are hobbies we do b/c we like the skill itself or b/c we want to have what comes with it. E.g. when I do a SW or HW side-project I really do want to create the best product (as niche-y as it might be) and yes, I do care a great deal about whether others like it or not. Put simply I want to be the best b/c I can be the best. I couldn't imagine doing this just for fun. TBH the whole idea of just-for-fun side projects sounds absurd to me.