Immich does it on the server.
What happens if there’s a new, better model? You’d need to re-download, decrypt, and run inference on all your past media, which is in terabytes for many.
I understand the benefit of e2ee in a situation where there is no trust between user and admin. In personal self-hosting, that’s the same person (or family), and the upsides are not as relevant. The downsides (possibility of data loss for, e. g., kids who are not very good with passwords/keys; difficulties with updating models / thumbs; …) remain important, and outweigh the benefits, even assuming the e2ee is implemented well.
You do you, but the trust is beyond just admin and users. And family photos are treated as treasures. Data loss is a fair point, but if you're self-hosting a photos app I imagine server/db backups are part of your routine. Account recovery is all that's needed to recover lost photos from there. Well, unless your VPS is compromised in a manner of data loss for longer than you wished before your backups ran, in which case it's still better that such sensitive info was e2ee'd.
edit: also feel like I'm echoing the classic dropbox comment, but self-hosting in a sane and secure manner is harder than it's made out to be. It needs to be taken seriously.