I think that is a bit stretch.
Let's see e.g. Wikipedia:
> End-to-end encryption (E2EE) is a method of implementing a secure communication system where only the sender and intended recipient can read the messages
It is only about the sender and intended recipient. In this case, if they actually would self-host, the server and sending devices are in the same entity group and it is encrypted where it matters. In the case of Hetzner, it is not, because Hetzner can access the machines as they are not in the sender's or receivers basement.
But there are some other benefits with E2EE if going strictly with "client-to-client" model - if server is compromised by the bug, there is higher chance that then data gets stolen as plaintext.