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Assuming this trend continues, I think people are going to start re-using older hardware rather than turning to server-grade hardware (which is often not convenient for the average residential situation).

At least, that's what I hope happens. What will probably happen is people will continue to migrate away from the PC platform and towards closed platforms for the convenience, if history is any indication.

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That's what I've been doing for years. I buy (or get for free) enterprise PCs coming off lifecycle at surplus sales. Nothing I do at home needs a cutting edge CPU. Unless you're a hard-core gamer or serious hobbiest/tinkerer a 5 year old or even older PC running linux is very adequate.

I think this is already happening, sort of. At least, people are hanging onto their older-but-not-yet-old components for much longer than they used to. I recently tried to build a NAS from eBay parts, and I was surprised to find that the newest stuff affordably available was 6th/7th generation Intel Core parts (retailed 2016/2017). I think people are trying to offload these CPUs in particular because they can't run an unmodified Windows 11 installation (no firmware TPM 2.0 implementation, and the corresponding consumer motherboards typically didn't have a discrete TPM module, either, if they had an LPC bus connector at all). Very little (reasonably-priced) availability of similar-aged Ryzen CPUs (which have firmware TPM support) or newer Intel CPUs.

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