Title says it. Apparently lemmy devs are not concerned with such worldly matters as privacy, or respecting international privacy laws.
But pii isn’t being sent. A user’s nickname and the domain of their instance plus any content they create is. If they choose to put their pii in public posts or user info, that’s their choice but is not pii solicited in order to operate the service, it was volunteered.
It’s a crucial difference. I considered this when writing the terms and data retention information for my own instance. Federation is very frugal about the information shared.