You can pick another Matrix host if you want, if there are any. Element being the first to host the services they develop commercially makes sense. If another Matrix host stand up, you're free to go with their competitor instead and still chat with the same people.
The biggest downside of this kind of hosted service is that they use subdomains of their own service. That means that you can't take your exact username to another service if you do end up switching. For most people, this makes switching from Element Home to something else as much of a problem as switching from Whatsapp to Signal.
The same is true for other federated services like email, of course, but the service would be a lot more portable if, for example, you could buy a domain, have the folks at Element set up the necessary DNS config (they can require one particular domain provider for their API services for all I care), and then later be able to switch to another host with the same contacts, usernames and services. Because of data portability laws, Element is forced to make this possible in the EU anyway, so it might as well be a feature of the Matrix ecosystem to be able to transfer your domains and accounts without hassle.
The biggest downside of this kind of hosted service is that they use subdomains of their own service. That means that you can't take your exact username to another service if you do end up switching. For most people, this makes switching from Element Home to something else as much of a problem as switching from Whatsapp to Signal.
The same is true for other federated services like email, of course, but the service would be a lot more portable if, for example, you could buy a domain, have the folks at Element set up the necessary DNS config (they can require one particular domain provider for their API services for all I care), and then later be able to switch to another host with the same contacts, usernames and services. Because of data portability laws, Element is forced to make this possible in the EU anyway, so it might as well be a feature of the Matrix ecosystem to be able to transfer your domains and accounts without hassle.