I have to disagree with both those assertions.

If a software is easy to self host, then there is no need to make it harder to deploy as SaaS. The latter will be irrelevant for most people.

And the problem of self hosting isn't a circular problem as you project it to be. There are architectural changes that can make it positively easier to self host without exposing the sysadmin to needless complexity. The example I quoted before - sandstorm - was a step in this direction. Deploying and administering applications on sandstorm would have been as easy as deploying one on desktop (including cross app integrations). The change needed was to modify the app to work with the sandstorm platform. Unfortunately, the platform didn't gain the momentum needed to ensure that all available apps would be ported. But it shows that the concept is viable.