This is the start of the use cases I wanted to see take off with Mastodon/Lemmy/Kbin. Much like the previous era of distributed content with user-hosted voice servers and forums, having larger communities/organizations run their own instances and avoid trying to treat the space as one big pool of content is the real use case here. The fact that you can cross-instance subscribe and post makes it viable long-term.
It also gives "free" verification of information's sources based on the domain, the same way that (modern) email gives you an extra layer of confidence when you see a verified domain. I would love the see the Government of Canada, CBC, Universities, all starting their own instances and utilizing them in unique and interesting ways. With enough adoption, official provincial/municipality instances could pop up to make organized communities easier.
It feels to me like a starting move away from the autocracy that the platform economy has created. It's not universal, but I absolutely push back against too many instances trying to be "general purpose Reddit replacements" because that seems like a fleeting use case for what it can eventually become, and it just confuses the whole abstraction of what these decentralized socials afford.