I don‘t see the problem. In fact your advantage is you can use the inbuild blurImage in the Image component with these images which is not possible with external images.

Be mindful that traffic accessing files in your public directory is counted towards your bandwidth, so in many hosting providers, it is not wise to put too many things that are frequently accessed in the public folder since your bandwidth will shoot up

i will selfhost it on a vps, so i dont need to worry about that

Yeah then it is fine, no issues