Its nowhere near as centralized as Google Analytics though - at least if you're self hosting that data is confined to the silo which is your own analytics, rather than Google being able to aggregate that with their behaviour on every other site they visit as well.

That silo is still aggregating data. Trying to argue its "less" centralized by using quantification of the amount of centralization is still akin to dissonance. Clearly people here don't agree with this, but that's to be expected when the topic is so polarizing. Traffic analytics must be important, so we rationalize our actions, or inactions around how we collect them.

Any centralized solution, at any scale, can possibly violate someone's privacy. Period. If we want to really fix things, we should stop circle jerking ourselves and do something about it.

Not at all. The entire point is that Google is able to track one person across many, many sites. That is simply not possible if each site had its own self-hosted analytics.