We host most stuff at home, and then additionally some services at Hetzner on an (auctioned) root server. Bloody nice to get really good hardware for cheap, plus unlimited data with either 1 or 10Gbit synchronous network speed, a dedicated IPv4,...
Stuff like my mail server lives there because it HAS to be available, and doing it at home, and doing it well, is next to impossible.
I'm planning a nix hydra + cache server, which will probably also live on the Hetzner server, simply because it'll have pretty intense jobs to run a lot of the time and I'm not a fan of having the noise of spun-up fans at home.
Both solutions have their place, is what I'm saying / agreeing.
You can store Passkeys in open source password managers.
I don't know most of my passwords, so the step to passkeys doesn't feel like a big one. I also really like the flow of pressing Login; Bitwarden pops up a prompt without me initiating it; I press confirm. Done, logged in, and arguably more secure due to the surrounding phishing and shared secrets benefits.