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Several Piracy-Related Arrests Spark Fears of High-Level Crackdown * TorrentFreak
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Precisely but it doesn't have to be remote. Some people self host locally but that requires a fast connection and a vpn. Most remote seedbox's are basically virtual private servers. They usually have apps like Jellyfin or plex for streaming all your content locally. Which is what I do and it's very automated and convenient. You can also use your seedbox as a vpn tunnel. If you're a member or interested in private torrent trackers, a seedbox is recommended to help keep your ratio high.
Is this actually considered seedboxing? I always thought it was a remote thing for an extra layer of privacy
They can be. It's really down to user preference. You can setup your own server locally with containers and vpn Killswitches, or you can pay monthly on some server space remotely. A seedbox is basically just a server for seeding/torrenting.