You could ask their admins why they have their instance configured that way, but I would guess that it is because none of the small number (310) of local communities there are very high traffic: sorting their Local view by New shows that there have been slightly less than 20 posts in the last 3 days and more than half of them are from a single user in a single community.
So, having the logged-out view show All instead of Local by default makes some sense.
Does this mean the instance is inactive? No, it says they have 322 users/day and 827 users/month. So, I assume most logged-in users there also primarily read and post in remote communities.