The problem with that argument is that there's value in something being not Facebook/Meta (or Twitter, or another corporate owned and run mega service), but that value isn't as easy to demonstrate as "here's a bunch of shiny features", and once people are locked in, the focus shifts from improving the service to monetizing the service, making it rapidly worse for everyone.

People largely don't think about how the services they use are structured, until any inherent structural issues come back to bite them. Twitter's an obvious example, with people who were dependent on it for their livelihood from a networking/advertisement perspective ending up in trouble when the service went south. Reddit's another example, although how that ends up is still TBD.

EEE does not work by outperforming the OSS alternative. The extensions will be proprietary, and won't be able to be ported to Lemmy.

Kbin deserved to win in that case.

Nobody is saying it doesn't "deserve" to win, whatever that means in a federated non-profit social network. The issue is that kbin probably wouldn't be an asshole that intentionally created compatibility issues with lemmy just because they are in a superior position on the market in order to kill its 'competition'. Meta absolutely will without a second thought.

There is no competing feature-wise against a major corporation. And Facebook doesn't deserve to win.

You pretty much confirmed his point. His entire idea is that it doesn't have to be Kbin that makes better features, Kbin was simply an example. It could be Meta that makes better features. Open source developers will never be able to compete feature-wise with a corporation that will deliberately pour money into making more features than the open source developers, and Meta definitely won't make them open source. Hence, as per your wording "Meta deserved to win in that case", which is exactly what we'd want to avoid.