Local-first is the future. Most cases don't even need a backend to self-host.
The core selling point (hiding latency) is big I think. But, if you self-host, the user/business can put their server very close and reduce latency to unnoticeable levels.
I think local-first is cool, really cool and makes beautiful apps. But I think it's only worth it for a small subset of software, far smaller then self-hosted.