Corporate online social networks ultimately aim to increase profits, so they inevitably enshitify themselves. Meanwhile, the federated system allows users to switch instances or even create their own should their current main instance become unappealing. It also allows users to join several instances simultaneously, allowing users to tailor their experiences based on purpose and privacy.
That’s a nice ideal, but it doesn’t work in reality. That freedom will be abused by corporations like it’s already abused by propagandists.
Instance owners should do basic regulation for the health of the network, which means defederating from malicious corporations and sources of propaganda.