Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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I'm not sure it's going "wrong". It depends on the scenarios it's designed for. If they intend it to be run on servers (there is no class of raspberry pi that is a server) then you design it to take advantage of those resources.
But it's designed for selfhosting and consumes all that without doing much.
I didn't mean to imply it needed server hardware. You can absolutely self-host Nextcloud. But RPIs are the absolutely lowest-end of hardware for serving duties. They're great little systems but they're designed to be cheap, not performant.
I self-host currently on a VM running on a 12 year old x86 system with 8GB RAM and with the Nextcloud file storage going over a 1Gbps NFS mount. Not exactly a high-end setup. And it performs just fine. I was previously running on a AWS EC2 instance where I noticed occasional issues running on a T4g.SMALL. (only 2GB RAM). I had to bump up to a MEDIUM at some point though.
It worked with less RAM pretty fine for a long time. But as I increased usage it would have issues occasionally. I think with all the images I have it was doing lots of processing for thumbnails and the like. I never really dove into it to see what exactly was going on though...
But still - a moderately old desktop system with 4-8G of RAM is just fine for "self-hosting".
EDIT: I should add - I'm also hosting MariaDB on the same server - also with its data stored on an NFS share.