That is A solution. To be "the real solution", it needs to be within the grasp of a regular person. Self hosting your entire digital life is absolutely asking too much of the vast majority of people
This is like saying the real solution to bad practices of food companies is to exclusively grow your own food, or the answer to anti-repair practices is to only build your own devices, vehicles, etc. Contractors cut corners? Don't try to regulate, just learn carpentry, plumbing, and HVAC plus codes!
You said it better than I could! As someone who does software for a living, do I want to come home and maintain a homelab that hosts photos, email, decentralized social, etc? Hell no!
Even if it's fun as a hobby, I don't want to be on call for my own basic online services.