Yes and no. Bigger servers can see more posts and communities on other servers because of how the federation works. I have an account on a small instance and an account on lemmy.world, and my All feed has way more content on lemmy.world. I've also run into issues finding and subscribing to communities on the small instance.

If you're on a large instance, there's a much higher chance that someone else has searched for the community you're looking for already and the server knows about it.

Less technical users aren't going to understand any of this.