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The strongest point of warhammer is to create your own dudes. To kick start your imagination. It is fun to make your own army, but what about your own faction?

I'm searching if someone created a custom OC Army fits thematically in the Warhammer World (fantasy, but I would also accept 40k). One might argue that any of 100 races of DnD fits the bill.

No, the nice part of WHFB races were how they fit together. Their social structure, Their giant beasts, their heroes.

I'm not talking about lore grounded stuff like Amazons, or Nippon. I'm talking something original.

And if you, as me, never saw one can you suggest why people are not writing their own armies?

People like some sort of semi-official, community-OKed status to the rules they use, whether it be wargames or RPGs.

Many people, especially of older editions of WHFB, probably don't play too frequently. If they get their 1 game a month, maybe every 3 months, they might not want to get ground to dust by some opponent's homebrew that's a little overtuned.
And hey, even if it's not overtuned, they might blame the results of their own poor tactics/the luck of the dice on "homebrew imbalance" and decide not to "waste their time" with homebrew any more.

That's my theory, at least.

My concerns stem from gamers' lack of restraint when designing stuff for themselves.

People have always done ridiculous backstories to justify their bizarre conversions. I would just use the rules for an existing army, though. E.g. if you want an army of Oompa-Loompas, use the rules for Goblins, and reskin Animosity as... something to do with sweets.
If you needed to do a minor change, e.g. giving your warboss-equivalents access to pistols to fit the cowboy theme of your (increasingly bizarre) Oompa-Loompa army, I doubt anybody would complain much.

I worked on a Stygian armybook back in 7th edition Warhammer FB.

I liked it.

When you are enthusiastic it is easy to make the army op though.