I have done many postgres deploys on bare metal. The IOPS and storage space saved (zfs compression because psql is meh) is huge. I regularly used hosted dbs but largely for toy DBs in GBs not TBs.

Anyway, it is not hard and controlling upgrades saves so much time. Having a clients db force upgraded when there is no budget for it sucks.

Anyway, I encourage you to learn/try it when you have opportunity