The issue isn't, and was never in these cases, that some private information is stored on said company's servers. The issue is that they advertise and promise privacy but break that contract.

While I agree that people should generally be well informed about these topics at this point. The reality is that not everyone is. And even then, there are many people (probably most) that don't know of viable alternatives. And even with self-hosting, even if the will is there not everyone has the skillset or the means (buying hardware, or a place to run it).

The bottom line is that for many people moving away from cloud hosted docs isn't a straightforward prospect.