I have previously discussed this topic as well here.
The simplest solution is to base rewards on performance. If a hardware node outperforms a vps in the speed and performance of duties in the node role then it should be rewarded more but a blanket higher reward is silly especially if it underperforms. I also breakdown decentralization because it is important what location/jurisdiction the nodes are in as local issues legal/emergencies/governments/regulators could influence/impact nodes presearch needs to make sure their is good geographical distribution of nodes as well as user distribution (meaning not allowing single users or entities to control too much of the node network. These should be a factor incentivized for greater decentralization. See my ideas on how to reward exactly what the network requires to survive and thrive.