Defining "self-host" so narrowly as meaning that the software has to run on a server in your home closet ensures that it will always remain niche and insignificant. We should encourage anything that's not SaaS: open source non-subscription phone apps, plain old installable software that runs on Windows, cloud apps that can easily be run (and moved) between different hosts, etc.
Anything that prevents lock-in and gives control to the user is what we want.