We will need small and independent commercial providers for the Fediverse.
I see corporations as a people-eating machine. That is to say, they are a system of parts whose functions are to obtain profit, and if proverbially “eating people” is necessary to do so, the machine will do so. As they’re smaller, well meaning people will still be in control of the machine, but the machine will still want to eat people (again, figuratively).
There’s many things we can do to help offset that risk. Having many small competing businesses is a great way, so long as we can keep them small, and keep them competing. Introducing public options that are free is another way. Should the machine start eating people, there’s nothing stopping people from going to the no-frills one provided to them.
This is also the idea behind a “public option” for internet and telecoms - not to completely get rid of ISPs and telecom companies, but to make ISPs and telecoms compete against a cheap or free option that works only to exist and give the basic needs of the service to people. This has worked out in spades for the Canadian province of Saskatchewan, whose crown corporation Sasktel has ensured the province has the best rates for phones and internet in the country, regardless of what provider you go with.
Sorry for the rant!