Have we gone full circle but made it more complicated?
Installing programs locally.
Installing programs locally that need network access.
Using web versions of those apps.
Installing docker to run the web apps but locally.
I make self-hosted software and haven't yet created a Docker image for it, but some people do want it. I also think it's useful, especially if you want to run multiple apps on the same server while having each app mostly isolated for security/privacy/performance reasons.
I think a good self-hosted app should provide numerous ways of installing it (Docker, bash install script, tutorial for manual installation, etc.).
Certainly some of these work fine to run as on-demand programs instead of services for many use cases (e.g. jekyll, rclone). I would say there are a wide variety of use cases that could have some of these running as a service on a laptop or workstation when it happens to be up, but doesn't need to be particularly high availability, too.