We host instances for trans and gender diverse folk, to provide a space that explicitly puts their safety first.
Take away the idea of an instance as a community/identity/distinct space, and the goal for these places existing is gone. Instead of a community and a safe space, we become a generic bit of hardware that enables transphobes as much as trans folk.
That’s not something I’d be keen to keep sinking my own funds in to to support.
What I’d much rather see is instance based accounts, however, with the ability to take over/migrate them from other instances, so that if an instance goes down, people can still keep their identity. It would also allow instances focused on protecting minority communities to keep doing that.