Yeah, that is why it’s such a big deal when a big instance defederate from another. If there was a large number of small instances nobody would care.
I think account migration needs to be the next big feature to prevent people from bunching up in big instances. Everyone is new when they start and the biggest one will always be the simplest to find.
It feels like s legal liability to start a instance and not police it. People could upload CP and you would be on the hook because you are the server owner and clearly did nothing to stop it.