I'm curious why dedicated servers can be rented from a 3rd party hosting provider, but that dedicated server is not distributed to the community for us to run our servers like other survival games.

If we want our world to persist and play with more than a small handful of people, we are required to pay rent to a hosting provider.

There are enough subscription services to pay for these days, paying for the convenience of someone else hosting your server for a game we purchased should be a choice that we make. 

Creating a barrier to entry for the community to organically grow via a subscription service is not great for the health of the game. If a hosting provider can be given the access to run a dedicated server so should the community.
According to a post on their Discord, dedicated servers on a local machine are to be implemented really soon

Well see how soon is really soon I guess

Edit:
Just dropped an update on Steam about this: httpsstore.steampowered.com/news/app/715400/view/3443593298797038288

Looks like really soon is 12pm Pacific time