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Jellyfin runs locally, it's just accessible through a reverse proxy that I have running on the VPS. It's not really practical to run it on a VPS since hosted storage ends up being a lot more expensive and my library is relatively big. Bandwidth hasn't been a huge issue so far though as not too many people use Jellyfin at once. I could see it becoming a problem though if I hosted too many of the other services locally too, like Nextcloud, a Minecraft Server, Teamspeak (for some friends who are eternally stuck in the 2000s), gittea and several more.
I'd also need to run a second machine to host docker containers on or replace my NAS completely with something more powerful, which likely wouldn't make sense economically as I live in a place where electricity is relatively expensive.