You said it yourself, what most people want (and seem to think this is) is a forum, not a fediverse. Imo a lot of the users who feel a strong need to control everything for everyone will end up leaving, since this is closer to what reddit used to be (you went to r/all and it showed ALL, not the watered down version that they forced for advertising reasons) and we all know it’s not for everyone.
True, the rest of the point stands and there’s a worrying slow reaction against communities/instances that are actually dangerous