It also raises some pretty big issues, like who gets to moderate communities? Right now you make a community on a specific instance, you follow that instance’s rules, so the instance host has authority over the community. If you disagree with the instance’s rules, or with the way the community is ran, you can make a community on another instance, or even make your own instance with your own rules.
And from the other side, there need to be people with the authority to remove communities, and remove people/posts across different communities. Right now that’s the responsibility of the instance hosts, to my understanding - content is hosted on a primary instance, and stored through federating instances, so the primary instance has a responsibility to keep it clean of illegal material. Who would have this power and responsibility if instances aren’t differentiated? Sounds like the best case is giving trustworthy people an excessive amount of power, and the worst case is the entire network being shut down due to distributing illegal content and being effectively impossible to moderate.
You also didn’t address the issue of passwords - currently it’s a pretty big deal when hashed+salted passwords leak, considering those passwords compromised… The comparison with AWS is flawed - when using AWS, you’re trusting them, because it’s a big company with a reputation to keep. The situation seems very different when it’s random enthusiasts with highly differing views, and without a central authority to verify them (though there are probably too many to verify anyways)
And you propose that anybody can join the network and receive users’ passwords? On top of that, you’re proposing that you need to also know the “server” your data is stored on and supply that with logging in? Sounds like a really annoying friction point for the user.
I really feel like you’re approaching this from the wrong direction, suggesting Lemmy should abolish the very structure it’s built on for one you’d like more, but I think it could be possible to make the experience nicer without going to those extremes.
Maybe it’d be possible to let multiple instances have authority over an account, without changing its home instance, so that if your original instance goes down, you can keep the same account. And to reduce friction from communities being made across multiple instances, some way for communities themselves to federate/combine would be nice, and is probably being considered by people smarter than me.