That's the plan, but to get to actual decentralization, one of the steps is for more people to actually move their PDS's somewhere other than Bluesky.
(They are not self-hosting; Eurosky is doing it.)
But... if Waag are not self-hosting, and they're not, how likely is it that normal people will start doing so in relatively large numbers?
You won’t have decentralisation on Atproto because the protocol itself incentivises centralisation.