Selfhosted

Your phrasing of the question implies a poor understanding. There's nothing preventing you from running containers on bare metal.

My colo setup is a mix of classical and podman systemd units running on bare metal, combined with a little nginx for the domain and tls termination.

I think you're actually asking why folks would use bare metal instead of cloud and here's the truth. You're paying for that resiliency even if you don't need it which means that renting the cloud stuff is incredibly expensive. Most people can probably get away with a$10 vps, but the aws meme of needing 5 app servers, an rds and a load balancer to run WordPress has rotted people. My server that I paid a few grand for on eBay would cost me about as much monthly to rent from aws. I've stuffed it full of flash with enough redundancy to lose half of it before going into colo for replacement. I paid a bit upfront but I am set on capacity for another half decade plus, my costs are otherwise fixed.

KISS

The more complicated the machine the more chances for failure.

Remote management plus bare metal just works, it's very simple, and you get the maximum out of the hardware.

Depending on your use case that could be very important

After many failures, I eventually landed on OMV + Docker. It has a plugin that puts the Docker management into a web UI and for the few simple services I need, it’s very straightforward to maintain. I don’t cloud host because I want complete control of my data and I keep an automatic incremental backup alongside a physically disconnected one that I manually update.

Depends on the application. My NAS is bare metal. That box does exactly one thing and one thing only, and it's something that is trivial to setup and maintain.

Nextcloud is running in docker (AIO image) on bare metal (Proxmox OS) to balance performance with ease of maintenance. Backups go to the NAS.

Everything else is running on in a VM which makes backups and restores simpler for me.

Containerisation is all the rage, but in reality it’s not needed at all for all but a tiny number of self hosters. If a native program option exists, it’s generally just easier and more performant to use that.

Docker and the like shine when you’re frequently deploying and destroying. If you’re doing that with your home server you’re doing it very wrong.

I like docker, I use it on my server, but I am more and more switching back to native apps. There’s just zero advantage to running most things in docker.

Bare metal is cheaper if you already have some old pc components layjng around and they are not bound to my host pc being on. My PC uses a 600W power supply to run while the old laptop running my Jellyfin + pihole server use like 40W.

Not knowing about Incus (LXD). It's a life changer. Would never run any service on bare metal again.

Using GenAI to develop my Terraform and Ansible playbooks is magical. Also, use it to document everything in beautiful HTML docs from the outputs. Amazing.

You sure you mean bare metal here? Bare metal means no OS.