Other than the convenience of managed servers, the only convincing argument I’ve conceded to for cloud is being able to scale up resources (CPU, RAM, storage, or bandwidth). If you run an ecommerce (black friday), slashdot effect (sudden web traffic), or USGS after a major earthquake.
For static load, I’ve used baremetal servers for years on online.net (now scaleway) for under $20/mo. Hetzner auction for i7 servers around $25/mo. OVH/kimsufi for personal dediservers (low end CPU or storage ARM server) for $4-10/mo. For some reason, Europe seems to have the best deals on VPS & baremetal. Granted, they aren’t RackSpace, but I’m not paying RackSpace prices either.
For personal servers, I’ve contemplated signing up for dynamic DNS on Hurricane Electric. Then, I could potentially run a server at home with port forwarding. I’d have to manage the uptime and backups myself, but I’d only pay for hardware upfront and ongoing electricity.