It sounds like the key difference people are missing is that VPN's operate at the network layer, so they require separate integrations for every device os/arch and network stack, where Iroh is embedded at the application layer, so any app can be a P2P VPN client without worrying about device network integrations.

Sounds great to me, and would be a boon for self-hosting and decentralization in general, which is sorely needed considering how captured, authoritarian, and anti civil liberties every democracy is becoming. If I'm not mistaken, I believe I read a tailscale blog about them envisioning application layer embedding at some point as well.