I hear what you’re saying, and I agree that running something locally is appreciably different than using something hosted elsewhere. But I think it’s critical

I hear what you’re saying, and I agree that running something locally is appreciably different than using something hosted elsewhere. But I think it’s critical to be precise about this. Open source is still open source, and this designation is still meaningful even if an open source product provides a hosted version. The downsides of letting someone else host something are independent of the the open/closed source status.