But hey, with the number of outages GitHub has recently that break even point is coming closer and closer.
These are all the reasons why I don't want to self-host my own git. I can live with it being down every now and then. And when it is down, I don't want it to be my job to fix it. I've got more important stuff to worry about.
I wound't say people become more afraid, they just don't see the reason to bother. I'd choose GitHub or Gitlab for small teams at any time. I'd probably even be fine with the free versions.
I see little to no reason for self-hosting in a small team. I cannot imagine a performant server, bandwith and the employee it takes to maintain it to be cheaper than the 10€/month/user for a hosted solution.
Many small companies already have VMs running other services.
Gitlab and gitea don't have that high performance requirements, especially when you consider how absurdly cheap high-core-count CPUs, RAM and NVMe SSDs are these days… and that's assuming you don't just chuck it into your existing cloud infrastructure and call it a day.
But even self-hosted redundant gitlab setups for several hundred users can be done with cheap commodity servers (or dedicated hosting providers like Hetzner) for <5€/user/month, and maintenance is on the order of 1-2 hours per month.