I host quite a lot (all) of my own infrastructure at home. I have a nice connection 100/100. My blog was hosted at home for a period. The primary reason i moved the blog to a hosting provider is that I don't have enough redundancy built into my home network to keep it online if I want to change something. I could buy a second router, double up on switches, but it's just a waste of money, I'm not making money off it.
For the services that i use, hosting them at home gives me more flexibility and more space at a cheaper price. My Owncloud solution has me with 4TB of redundant "Cloud" storage. Not as "safe" as having it with Dropbox or Box.com (offsite), but it's the flexibility that i like. I deal with backup in my own way.
The datacenter can provide much higher reliability than a home setup can and if I was going to start some sort of service/business then i wouldn't buy a rack and put it in the garage. The datacenter has redundant power, internet, servers, support staff etc. You can't beat that with a home setup.
I have no problems with hosting personal services at home and i personally prefer to have them at home if possible.