I use plex to share home movies which were ripped from DVD (and converted earlier from VHS) 100% legally (although the MPAA is probably trying to make it illegal to record home movies these days too /s)
Home videos is an edge case use for Kodi and Plex. They have built in integration with services like IMDb for goodness sake. They don't even have good interfaces for namings and cataloging home videos. Getting custom stuff into Plex is basically kind of hacky. Not nearly as easy as dropping in a movie and letting it sync all the info from imdb automatically.
