I’m saying this based on real world experience
And do you think I would spend my time engaging if that wasn't from my own very "real world experience" of lessons learned the hard way?
Bringing-up "diminishing returns" as if this was an optimisation game also doesn't do this justice. Take the typical "household FOSS package" with software names often brought up in here: a nextcloud instance, a photo-sharing service like immich, private instant messaging, a software forge, a subsonic-compatible audio/video streaming server, a couple php websites like wallabag and RSS aggregators.
An Intel Atom CPU and 4GB of RAM is plenty sufficient for all that, and will cost you single digit USD a month, granted you put the (one-time) effort to tune and balance those services. Would you run all the above from upstream's docker files, I can guarantee you that you would deem this (perfectly fine otherwise) server underpowered for the task at hand (and would probably go for a 10th gen or so Intel Core CPU, quadruple the RAM and 3-6× the energy cost in the process).
And that's the point I'm making here: a self-hosting community of tinkerers should (ideally) know better, for the ethics' sake of keeping the process environmentally friendly, and not wasting other people's money.