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This is why we host our instance on a .org. Honestly another huge blow for Lemmy. It doesn’t really inspire confidence in the platform. Hopefully after enough time passes smaller instances like us and the bigger ones left will have help up a good track record to inspire confidence again.
This could be a concern but i think it will even out in the end. Many people will naturally gravitate to am instance that suites them. I created unilem.org as an instance aimed at not defederating. Some will like that and join others will not and find a different place that suits them. Its the beauty of the fediverse. You can choose your home or even host your own.
I think users are jumping over to instances that more fit their personal values. Its why I left lemmy.world and created unilem.org. An instance for no defederation. It might not be for everyone. But i prefer to be able to access everything in one place and do thr moderation/blocking on the user level.