Let's not forget... the reason this type of licensing exists is because large cloud providers were taking a large code base and selling them as services . Often, the main path for the creators to make any money from their code is to offer a paid, managed tier, along with professional services. They would end up competing, and losing, against those cloud providers.

Not saying this kind of license is good or bad, but the reason is often not to stop self-hosting or screw contributors, but to maintain couple of the only pathways FOSS can bring in revenue.