Everyone hosting their services on their own hardware is the web infrastructure equivalent of getting everyone to smelt pig iron in their backyards. Some amount of datacentres are necessary for the functioning of a modern internet.
The problems we’re seeing at the moment are a result of artificially inflated demand driven by AI bullshit disrupting supply lines of hardware that could actually be useful to people, the lack of environmental planning, and the condescending refusal by datacentre builders to engage with the reasons communities are opposed to their projects.