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I'm confused why you would want to turn an expensive thing (cloud block storage) into a cheaper thing (cloud object storage) with worse durability in a way that is more effort to run?

I'm not saying it's wrong since I don't know what it's for, I'm just wondering what the use-case could be.

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I've quickly come to this conclusion. Essentially looking for offsite backup of my NAS and currently paying around $15-$20/mo to Backblaze. I thought I might be able to roll my own object store for cheaper but that was idiotic. :-)

Totally fair. There are some situations where you can "undercut" cloud native object storage on a per TB basis (e.g. you have a big dedi at Hetzner with 50TB or 100TB of mirrored disk) but you pay a cost in operational overhead and durability vs managed object store. It's really hard to make the economics work at $20 price point, if you get up to a few $100 or more then there are some situations where it can make sense.

For backup to a dedi you don't really need to bother running the object store though.

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