Because imagine your local biz can either pay a designer 1k a year or DIY and pay godaddy 200 bucks. Or 30 bucks for Wordpress and 20 hours of fiddling and asking their cousin for help.
Its not great by our standards but I bet many of us drink the house wine not something more sophisticated, right :)
Why? Genuinely asking. Did you mean because there are free alternatives to self-host? I don't think that it would be so easy for someone in the market for a WYSIWYG blog builder to set everything up themselves.
Exactly. Because of the abundance of the one-click deploy WordPress offerings from value providers like OVH / Hetzner I would think margins are very low for WYSIWYG site builders.