This is very informative and echoes a lot of my opinions.
I don’t like my identity being tied to the instance I created an account on. I should own my identity, like on nostr.
My instance/relay having moderation decisions is not as clear cut. It’s beneficial as long as your interests align; without it you end up having to manage crypto spam yourself. But moderation policies are fluid and work both ways on the fediverse.
It is important on the fediverse which instance you create an account on. Which is a huge barrier to entry for non tech users. Pointing them to the biggest instance by default compromises the decentralisation.