Hmm I’m not sure it’s as simple as that. The things stopping me from hosting my own Lemmy instance is that I don’t see notices about data processing/administrating entity/right to be forgotten/data dump about yourself anywhere on public instances. I don’t intend to implement these myself or share with whole word my home address so that they know where I am located. However the public instances are running fine without this, so maybe this threat of lawsuits isn’t as serious as you suggest?