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Storage size, privacy, security, operating cost…I can think of several reasons. I use a cheap vps to help me route traffic to my ebook server, and I don’t have to pay for extra storage on the vps to hold all my comic books, which can be quite large when scanned in HD.
Not when used with Tailscale. You can put Tailscale on the VPS and on your home server, put Nginx on the VPS and point it to the Tailscale address for the desired service with your desired subdomain.
Voila, Nginx is serving your content through the Tailscale tunnel without edits to your home network. If Tailscale works, then this will work.