You make good points. I think name squatting and squabbling over who is the “real” community was prevalent on Reddit, and the way it works here fixes that.
But I still think that a downside of decentralization like this is splitting the activity up, sometimes unnecessarily, and making discovery of new communities just a bit harder. It’s not a deal breaker by any means, but I think it’s an issue that will have to be addressed either by Lemmy UI updates or third parties.