My very vibes-based take is that setting up home servers is the dad jeans of tech hobbies. It's kind of arresting how bewildered many young people are when confronted with anything below the UI layer. I think peak tech savviness happened a bit younger than me: maybe mid-late millennial. After that you start getting into the iPad-from-birth generation for whom tech was rarely a challenge. Tech savviness among young folks feels more like it was in the mid-90s. They're infinity more online-savvy, no doubt, but when it comes to knowing anything about how that works, they're cooked.
I do know some non-developer Gen Z folks that would set up minecraft servers on DO droplets, but I don't know of any that actually made their own and hosted it on their own network.
Aside from more exposure to raw tech, the technology making the internet happen was a lot simpler back then, where servers were actually physical servers,and such. I was able to adopt the complexity progressively as it came into existence which is a lot easier with the base knowledge of how the building blocks worked.