When discussing Bluesky, people on here really need to stop thinking in terms of instances, i.e. running the entire stack themselves.
If many people run only parts of it -- and this is happening now that running relays has become easier -- and members of the network spread out, then that's perfectly fine. If your relay does some bullshit, you can take your PDS to a different one and get to keep your entire history. Relay admins and PDS admins are less incentivized to play stupid blocking politics because neither are a useful boundary for communities. This is better than what we have here.
The real problem is getting people to spread out to different PDSes and relays because most simply don't care about decentralization. This is pretty much like the "mastodon.social vs. the rest of the fediverse" situation, just more severe.
@volpeon@icy.wyvern.rip