What is the problem with self hosting?

Because this is more of a discussion type question, I wanted to ask in the #general channel, but since thats gone, I'll ask here:

What is the problem with self-hosting apart from missing authentication in the backend? Sure it's not great, and for some people that may be the killer feature missing, but for smaller Apps this all seems fine?

(I'm asking because a recent european ruling on privacy made it impossible to use US cloud hosted services for public contract work)
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