The new Linuxserver.io docker image at the very least has solved the annoying update cycle NextCloud has and seems to have fixed the need to do that every few months. I haven’t ever had it die but I don’t push it hard and I keep the plugins to a minimum because I just don’t trust it and it doesn’t run all that well.
I do both. I have a custom built NAS based on a Ryzen 3600 and ZFS across 4 drives which runs about 20 self hosted applications and stores the majority of my files but its only accessible from within the home. I also rent a small VPS for personal webspace and hosting self hosted apps I want out of the house.
In the past I have also hosted raw servers from Hetzner or bigger VPS from Amazon for the purpose of hosting a game server. Alongside those I often had community applications like website, forums, wikis and custom chat and voice comms services.
Its all self hosting to me since I run it. The various options are all about the trade offs of security, accessibility, cost and performance. The cheaper cloud options when you add it up can be cheap compared to buying and running your own hardware when you take into account electrical costs and the likely hardware replacement needs within 5 years. The big cloud providers aren’t price competitive but Contabo/Hetzner really surprisingly are especially if you pay a lot for electricity. But then if you need a game server it can be quite hard to find good fast CPUs on the cloud and its not going to be 24/7 for communities, so the trade off flips back to having your own.
Since I got 1 gbit/s fibre internet my need for internal NAS has definitely reduced as the internet is nearly as fast as the local network so I could now have my NAS needs remote.
Even the main search engines don’t index the entire internet of content these days and their databases are truly massive already. Writing a basic web crawler to produce a search index isn’t all that hard (I used to do it as a programming exercise for applicants) but dealing with the volume of data of the entire internet and storing it to produce a worthwhile search engine however is just not feasible on home hardware, it would be TB’s at least. It wouldn’t just be a little worse it would dramatically worse unless you put substantial resources to it including enormous amounts of network bandwidth which would have your ISP questioning your “unlimited 1 gbps fibre” contract. It would probably take years to get decent and always be many months out of date at best.
Doesn’t seem practical to try to self host based on the need to download and index every single page of the internet its a truly massive scale problem.
It has been slowly improving. It used to be a lot worse but I have a lot less issues with it now than I did before all the changes. Its not the fastest best way to do anything, there are better calendar, file sync, email etc etc applications out there in every category that run better but its also quite an easy way to make a lot of things happen.