To be perfectly fair, the world has always been screwed up in a hundred different ways at any given time. It's just more immediately visible to every single person these days
I think this underestimates how users will naturally gravitate towards more centralized instances, or they'll give up because the bigger instances are closed. Someone's gotta pay for it, and it's going to cost more than a Netflix subscription. Servers aren't cheap.
This also ignores that the system isn't horizontally scalable at all, so scaling up gets even more expensive
To be perfectly fair, the world has always been screwed up in a hundred different ways at any given time. It's just more immediately visible to every single person these days