Regarding the business model, there isn't any. At best it will be run by donations if the costs mount top high. I'm curious to see where it will go, but at least there are no ads at least not yet.
For now, but if this is how the maintainers of the main instance feel, how long before they start defederating from instances without their strict policies? Isn't that already happening on Mastodon?
The fediverse ends up really confusing because it gets so balkanized. "One domain, one community" is easy to understand. "We're all seeing the same stuff no matter where you are" is easy to understand. But with defederation as an option, you have to navigate a complicated web of the meta social network—the network of networks, and who federates with who.
Email doesn't have this problem so much because ideology is not a concern for private messaging. You have spam and you have anticompetitive behavior, but you don't have "random guy who happens to maintain the instance had a falling out with the random guy maintaining this other instance."
I don't mind if something is slighlty difficult to use, as it serves as a filter to participants and limits growth (subreddits with over 100,000 participants tend to be kind of guerrella marketing, meme-infested shitholes).
The obvious drawback of course is that you lose the non-tech savy interesting people and experts. I don't know how to mitigate that, but still very interested in seeing where this all goes.
This specific ideological slant is also not clear from its description on the instance list[0], especially when compared to instances like Lemmygrad.
Also without a business model they will struggle to maintain the servers required for even a tiny fraction of Reddit
[0]https://lemmy.ml/post/1167199