The point is that clouds aren't inherently bad, and actually come with a lot of important upsides; they've become bad because capital owns and exploits everything in our society, poisoning what should be a good idea. The author is arguing that while there's nothing fundamentally wrong with self-hosting, it's not really a solution, just a patch around the problem. Rather than seeking a kind of digital homesteading where our lives are reduced to isolated islands of whatever we personally can scratch from the land, we should be seeking a digital collectivism where communities, not exploitative corporations, own the digital landscape. Sieze the means of file-sharing, in effect.

There's so much to host that isn't related to pirated media sharing though. I host like 5 services and only one could be related to that. I know you clarified that you're talking about content, but there's also so much content that isn't related to pirating either. Like most of the fediverse for example