The encryption tech in many cloud providers is typically superior to what you run at home to the point I don’t believe it is a common attack vector.

They rely on hardware functionality in Epyc or Xeon CPUs for their stuff - I have the same hardware at home, and don't use that functionality as it has massive problems. What I do have at home is smartcard based key storage for all my private keys - keys can't be extracted from there, and the only outside copy is a passphrase encrypted based64 printout on paper in a sealed envelope in a safe place. Cloud operators will tell you they can also do the equivalent - but they're lying about that.

And the homomorphic encryption thing they're trying to sell is just stupid.

Overall, hardened containers are more secure vs bare metal as the attack vectors are radically diff.

Assuming you put the same single application on bare metal the attack vectors are pretty much the same - but anybody sensible stopped doing that over a decade ago as hardware became just too powerful to justify that. So I assume nowadays anything hosted at home involves some form of container runtime or virtualization (or if not whoever is running it should reconsider their life choices).

My point is that it is simpler imo to button up a virtual env and that includes a virtual network env

Just like the container thing above, pretty much any deployment nowadays (even just simple low powered systems coming close to the old bare metal days) will contain at least some level of virtual networking. Traditionally we were binding everything to either localhost or world, and then going from there - but nowadays even for a simple setup it's way more sensible to have only something like a nginx container with a public IP, and all services isolated in separate containers with various host only network bridges.