Federated software, for most people, is still entangled in a competition with mainstream social media, so the biological, psychological and social implications of the attention economy are still there. First and foremost, because they have to attract users away, and if they are boring, only people motivated by duty or politics will move and that's a microscopic percentage. You cannot offer a pbj to a heroin addict and hope they will quit. If anything, the federated social media do not offer enough interesting content.

What you're questioning though is somehow intrinsic to the nature of social media, especially when contrasted with social networks. Is the consumption of "content" (derogatory) in itself a problem? I would say yes, but then the solution is to ditch social media entirely. That's a shortcoming of federated software's (lack of) political grounding: they expect that by liberating data, they will liberate people. Such a thing never happened: software doesn't alter social or productive relations, it just grows within the boundaries allowed by existing social structures.