Google Docs and Photoshop Online have offline alternatives (and if you ask me, native MS Office is still the golden standard for interoperability of editable documents), and I use neither in my work or personal life.
Email is harder, but I do run my own email server. For mostly network related reasons, it is easier to run it as a cloud VM, but there's nothing about the email protocol itself that needs you to use a centralised service or host it in a particular network location.
MS Office is just one login away from storing documents in the cloud. I bet tons of users have their documents stored in OneDrive without realizing it.
Email is harder, but I do run my own email server. For mostly network related reasons, it is easier to run it as a cloud VM, but there's nothing about the email protocol itself that needs you to use a centralised service or host it in a particular network location.