Thats the thing tho, you would not get high quality filament out of a small “in the garage” type machine.
I have watched the field closesly, and as of now there is no cost-effective at homme alternative that works reliably enough for anyone but VERY interested enthusiasts to even give it a go.
Its not only shredding the material, you also need to clean it, as any dust or other impurities will lead to issues. Then you need to dry it thorougly, and the amounts are more than you can stuff in your oven or good old dehydrator.
Then you need to add virgin PLA pellets to the mix, as PLA can not be extruded unlimited times without degrading.
All this is before even extruding a single milimeter of filament.
So to even get to this point you are atleast looking at a couple of grand in investments.
Then is the actual extrusion of fresh filament, you have to have enough space, a very consistent system for sizing, cooling and winding.
Then, if one scrap of filament had an additive that you were unaware of, that might throw off the entire ting, and you go back to square one.
Oh, your silk PLA scrap had a bit of TPU in it? Potentially redoing everything.
Your PLA+ had some abs in it for strenght? Same thing.
Its the same thing with pretty much every deviation from pure pla, it can cause issues and contamination.
If it were currently feasible, there would already be an enthusiast “standard” alternative, but they all have big flaws, filament making is not something thats easily scaled down.