Super disagree. A community at the protocol level can have just as much character as a community at the network level, but without most of the drawbacks. The "instance as community" idea was always a poor substitute for actual Groups. The community shouldn't be a server that users are bound to; it should be a Group that has access controls and private memberships (if desired). The moderators get all the same benefits of maintaining a limited community with their own rules, but users aren't beholden to petty drama via instance blocks or defederation.