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1. It will continue to run when I log off meaning I wouldn't be booting my friends off the game everytime I wanted to go to bed
2. It would require less resources then hosting a server
3. Equal playing field with my fiends (If I host I can tinker with the server rules while they can't. On a official server I'm bound to the same rules as everyone)
4. Meet new people
it also has disadvantages
1. Hackers
2. Unannounced resets
3. Griefers (different from Hackers, they exploit the in game mechanics to destroy bases)
4. Exploits
Since you are coming from the background of wanting to play with friends: your own list of pros and cons looks like Private is definitely better than Official.
Well the topic isn't "why would you want multiplayer?" It's "why would you play on official servers, when it's so awful, when you could be playing solo/multiplayer (non-hosted)/multiplayer (dedicated private server)?"
Fixed
Never play with randos.
And especially in survival games, it just makes the world feel more alive. To see a rando strive for the same goals as you do, and you are both running around doing stuff in the world, either cooperating or competing to reach it. NPC AI still need to be worked on heavily in video games, before they can start to compete with human dynamism which makes a world truly come alive.
With all of that said.
I am currently not playing on official servers. I am not even playing on a dedicated server. I am playing on a server run by a friend in another country. And there are long periods of time where I can not get onto the server, so I assume it is because it is running entirely on her system.
It's free.
As stated, a person can host but the host can only have up to 4 players. The more players, the more taxing it is for their system. They can run a dedicated server on their computer but again, unless they got a good rig or a second rig, it costs them resources to maintain.
So the other option is to rent out a server. This obviously requires a monthly or yearly fee. Some people can afford it, others cannot. People are often very picky who they play with. Those who don't have a large friend circle or friends who are not interested in the game, usually have to seek out the Public Servers.
Cause you dont understand what early access is intended for.
You want working online experience? Buy a game thats not in early access.