I've selv-hosted this directly from my home IP - no problem!
Of course it didn't federate and was only open to friends and family behind an SSO portal so random visitors would never know - I'm not crazy. That would be like building a stage and send out invitations (in many ways as intended), but I used it as a warehouse and installed lockable doors!
A lot of services people would think of as "internet sites" works great with self-hosting, it's mainly just a matter of thinking things through. People that fuck up spectacularly and get on the news for openly hosting the hottest shit to like 500 million users just for the hell of it... Those are the type of people we hear about.
We never hear about those who lay low and never get in trouble, regardless of the legality of the contents.
I see how this could be really great if a site got up and we had a lot of consenting artists releasing their material for free. There's a lot of potential. But I also see agree with @[email protected] -- it's a recipe for otherwise getting wrecked by legal problems as people upload copyrighted music.
I'pll consider putting some old podcast stuff I have done up there at some point, and if I ever do podcasting seriously again, definitely I would host it through the fediverse.