You're right. 99.99% of users don't use the internet. They're just web consumers. As for hosting for people that actually use the internet, when you use a third party you have no expectation of privacy. Hosting from your own machines from your own home is always the best, easiest, cheapest, option.
That said, hosting from home and syndicating to a VPS is a great idea.
That said, hosting from home and syndicating to a VPS is a great idea.