Sounds great, but no one is willing to pay for it. And as long as it has to be ad funded, there will always be pressure to track, monetize, and increase engagement.
Once the software exists, I think it can be easily paid out of pocket by the subscribers. If one focuses on hosting a few hundred or thousand users, it does not have to cost that much.
I agree that it has to be self-funded, not reliant on "monetizing". But if your goal is a stable utility service, not growing to make a profit, I think it is realistic.