Hello Bishwa,
I believe the intention is to make the publishing/sharing process as straightforward as possible for the greatest number of users. Creating Hosted Services meets this objective. The user does not need to think about where the data is being sourced and whether the server can "see" it.
Using a federated server is available as an option if you know what you are doing and wish to use a User Managed data store.
I think changing the default value away from Hosting Server would not be the optimal solution.
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