Is this example actually real or is it made up?

💯It's the classic alt-right playbook of prioritizing civility over the actual message.

It's not a single person instance either, it's just using your own domain in your handle.

It's a for profit company founded by jack dorsey and currently led by a cryptocurrency fanatic

The CEO comes from the world of crypto and it is a for profit company

Can you link to one of these other instances?

There is only one bluesky it's literally centralized

If they choose to migrate to another instance, it will likely be a more extremist instance with poor moderation that has been significantly defederated.

In theory this is how it should work, but in practice the toxic people tend to move to general purpose more laissez-faire places like .world or .ml, which makes de-federating and cutting off 30% of all users a difficult decision for anyone trying to have a community.

The answer is less centralization, but that can't be forced. beehaw.org (for example) made the decision to cut off .world and they are better for it. But they are a large-ish instance in their own right.

Exactly, it also means we can have different regions for different types of conversations, much like in the real world.

Why would someone who doesn't like blocking and de-federation like "federated platforms"?

"You censored me for my opinion"

"What opinion was it?"

"..."

"What opinion was it Anakin?"