I have an out-of-the box set up on the trial plan and it is infuriatingly slow - not so slow that I won't use it. Just slow enough to be consistently annoying.
Will this system be faster if I host it on my own server? Or is the default hosted option considered "as good as it gets"?
It takes ~10 seconds for the dash to load. Maybe 1-2 seconds for a typical box widget to move or open. Even hitting edit on this message took 1 second to load!
It can be, if your server is of a decent spec, Jira is well configured and your networking fast between the server and client.
Cloud is usually slow because of network latency - Jira puts quite a lot out over the network, so if you have a slow one (even a fast network that is a long way away from the computers actually running your Cloud service will be slower), then yes, Cloud will seem slower.
I've only worked on locally hosted systems and never found them to be slow. You can try it out by downloading the trial server edition and installing it on a laptop or local server.
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