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Because while there is Public Servers. You never know if they are Permanent and/or what kind of Rules and Admins they got.
Often You end up on some Clan Server where if You Kill or Destroy something from that Clan You might end up Banned. Or even Private Servers that Randomly Close/Reset or Ban You etc.
Official Servers would be Nice as it would mean the Server will Run a Set amount of Time or even Permanently with no Sudden Resets.
And there would be no Players with Admin Powers that can just Ban You if you are in their Way.
It is not likely that there will be official servers outside of the ones occasionally made for a week or two of public testing.
EDIT: Besides that, officially servers are typically trash.
also dont invite random people ono your server.
Ye the setting exists but by default it's disabled (chunk respawning, not LCB breaking from inactivity) it's so high tier POIs aren't just leveled and nobody can get to higher tier loot without getting a quest. May not happen that often but it's just a future proofing thing to enable chunk respawning so people can go these pois without it being leveled.
Some people TRY to trust others by letting anyone join their server. I would guess most of those are either owned by kids or people who do not care to have a great experience though...
Technically it is still private since it belongs to a company but it's like public lands which belongs to the governement.