Note: the automattic (wordpress.com) Business Package Hosting is superior

Hello, I would like to get advice here, as this forum provides more accurate answers:

Many owners of WordPress / Woocommerce do not usually need deep access to their servers. The business plan of automattic wordpress.com allows for unlimited bandwidth and storage at a lower price than most cloud / managed vps providers of wordpress hosting. My question is:

1. Why should we choose hosted solutions? The business package from automattic already allows customization via plugins. Their list of restricted plugins, such as caching plugins, etc., is not essential, they have their own solutions. What are the advantages of additional flexibility in self-hosting?

(Yes, they do not have 1-click staging on their platform, but not all vendors)

2. How can automattic's hosting compare with other hosting providers such as wpengine, siteground in terms of performance and security?

Many Thanks