One thing to keep in mind is that this Mastodon instance is purely used by the government to speak officially. It is not a platform where regular folks can create new posts (they can still comment on and like posts made by the government).

They are basically removing their dependency on Twitter as a platform for sharing information to the public.

But the Dutch state instance isn't meant to assert power over user content nor is it meant to influence any information shared. Normal people won't be able to create an account on that instance, so they cannot see what people view or limit what people create.

The reason for the instance is to have a government owned instance to share things that aren't limited by another 3rd party commercial company. Now the government is in control instead of meta or Twitter and they can't decide to, for instance, limit view access for everyone with no accounts one day. (Looking at you Twitter)

Another additional advantage is that all the official dutch government accounts are now grouped on an instance with limited and screened account creation. So now everything from that instance is verified to be from the Dutch government. Possibly reducing fraud and impersonating accounts in the future once people get used to the federated usernames.

The big difference between Meta and the Dutch government, is that the dutch government's aim is not to compete and "destroy" other instances like lemmy.world/etc. Their instance is sort of their official digital megaphone.

Yes, anyone who is mad about the meta fedi is just fed misinformation and all this means is that there's more content to federate with, which is a good thing.