It contains the fallout of site-wide issues to some extent. Mods and user-on-user will still be issues. If one federation owner goes on a power trip everyone can just leave that server while continuing to use other Lemmy instances.

Essentially you’d only lose access to some subreddits instead of all of reddit in that situation.

You also would have 3rd party apps that would continue to work. Unlike now where apps like Sync are just down for a few months until they finish development for Lemmy.

But don’t worry, reddit had a run of like 6-10 years there where mods weren’t an issue so we have some time before that all starts.