Should have say: self-hosting is always superior to cloud hosting.

That statement still comes with a pretty damn big caveat though - you need to have the know-how, the time to invest and the hardware (i.e money) to actually set something like this up.

If all of those are true, then self-hosting can definitely be an attractive option for you.

It’s only true for a vanishingly small fraction of the population, though.

Hence, Bitwarden is a pragmatic solution that will be superior for the vast majority of the population.