Just a little rant. When I first visited Lemmy Sites a couple of months ago it felt empty. Besides the really mainstream community pretty much everything else just felt empty.
Meanwhile though traffic has increased a lot and I feel well entertained by the traffic in c/hfy c/noncredibledefence c/keepwriting c/worldbuilding and so on. It is certainly less than Reddit but often quality is substancially higher and is "enough" to keep me entertained.
Also I like that you can actually post something without running into a bazillion deletes, bans and moderator shitshat because your post was two words to short, not NCD enough and so on.
Sure, the C64 community on Lemmy is laughable. So is the ARMA community. I still use REddit for that. Also I often check up stuff on r/hfy and r/NCD but since one week I have been prefering Lemmy for that.
Also my longer posts don't get eaten up any more. God, three weeks ago most posts with 3k an more just got lost without feed back. Nowadays I have even manges posts around 20k without breaking them up. Though the editor is still lacking for longer posts. On Reddit I can copy-paste pretty much anything from Libreoffice into Reddits Editor (which is also pretty lacking but differently lacking). On Lemmy I have to run most text through a little perl script to get them even using correct line breaks perl -pe 's/\n/\n\n/' and different sizes for Headlines are much to few to select from.
Not perfect, not even very good but definitely promising.
That's the exact opposite philosophy of the technology you're leveraging. As the apps add more features and the fediverse grows, it will make more sense.
Also, wouldn't having a variety of instances essentially make it trickier to monetize? I'm still trying to understand the idea of instances myself, as it is new to me.