And for people that want the fediverse to stay small, that would be fine. For those coming from very large sites like Twitter or Reddit, it often will not be because the value of those sites comes from the size of their networks.
It won’t kill the fediverse but it might kill the various dying-mega-site migrations. For some that will be welcome. For others, not so much.
There isn’t a one-size fits all here. The biggest danger is the fediverse devolving into a paranoid war of words solely because some people think there should be.