Renewing annually isn't just updates, it's also for Support. Some of us are perfectly capable of supporting ourselves so we don't need to renew constantly.

This. Also, if you compare:
XF License 195$, renewal 60$/year for updates + support
ES 60$, renewal 10$/year for updates + support
RM 70$ renewal 15$/year for updates + support
MG 70$ renewal 15$/year for updates + support
So if you have all three addons this sums up to 100$ per year.
If you want to run your forum to run as cheap as possible you buy the basic license only, renew let's say only after every 3 years and do not run any paid addons. This results for a ten year period a total of 375$ in license fees. Divide by 120 months you end up at a little more than 3$ per month.
If you run your forum on shared hosting to save money can do that for 10$/month. So you can run your forum for 13$/month, if you are willing to deal with all the tech stuff yourself (including doing backups for 0$).
At the other end of the spectrum you'd have all 3 factory addons and renew every year. This would then add up to 1295$ in ten years, almost 11$/month. Probably still not a sum that would kill anyone or be unaffordable.
You'd use a quality V-server or dedicated server that would cost you between 50 and 100$/month which adds up to 6000-12000$ in ten years.
A total of 60 - 110$/month and the licensing is a neglectible part of that. If you have a forum that needs a dedicated host you'll probably invest relevant amounts of money in customizing, theming and addons. And you'll want automated, regular off site backups. So instead of 60-110$/month you'll easily end up with 200-300$/months, depending from your needs and solutions. Maybe even more with a high end solution. The XF licensing cost is an even more irrelevant part of that.
In both cases you'll have to invest relevant amounts of your personal time for keeping the thing up and running (or pay someone for it). Even if you consider it as a hobby you loose time through that that you could use for something else.
If you go for cloud in comparison you get all three addons (no matter if you need them or not), get rid of dealing with backups and updates, administration, caring for hosting, so you save a lot of time and hassle but you pay a little more and loose a bit in terms of possiblities for customization/addons. Depending from the size of your forum you pay between 60 and 250$/month. The relevant limit for choosing the size of the cloud plan for many if not most is possibly the number of page views: 400k / 1 mio / 4 mio.
So while it is not for me the cloud plan is possilbly a proper solution for many that are not tech affinados: In comparison to self hosting they pay between 47 and 150$ more, but on the other hand if your time has value and/or your interest or abilities in technical stuff is limited that can be a pretty good deal - even if you only spend a couple of hours per month with tech stuff and administration on a self-hosted forum this translates to a very cheap hourly rate that you's have to pay for cloud hosting instead.
If you are tech competent, have fun with administration or have special needs for your forum self hosting is probably the better way to go.
Either way the licensing cost of XF is neglectible, so I do not get the roaring discussion around the cost of licensing extensions.