> Social media and other services where the information is an important part of the service or software that can not be run on my own machine due to limits in my hardware.

I mean, fediverse sites like Mastodon or Lemmy, or even something like PeerTube show that it's possible to at least run instances of a larger federated service, albeit the user experience could be better (the average person asking "What do you mean, I have to pick a server to join?").

Admittedly, video hosting is the hardest due to space and bandwidth requirements, though perhaps the real reason why none of these platforms see real widespread success is the network effect - most people already are pretty comfortably in popular walled gardens and don't feel like they want to switch to anything else.