becomes easier to dox if you have the person’s location
Yeah, I guess "take over" is too strong vs "provide the option of". It shouldn't be the only way, but would be one very good option. They don't need to actually keep any records of who they gave an account to, and can take steps to obfuscate any privacy-violating processes. Historically, they've been very amenable to this, such as not handing over records about who checked out books.
How many libraries
That'd be a great thing IMO. More skills like that should be distributed and federated. Libraries should be community centers of learning, including learning how to run servers. Information isn't just books anymore, and libraries need to adapt.