I agree. It also works well for small differences between communities. For example a Lemmy.world gaming community might not allow discussion of piracy and it is allowed here. This instance also has rules against NSFW content and another instance might not.
The ideological diversity the fediverse allows is one of the coolest parts about it. There are instance admins, but there's no such thing as a single fediverse admin so everyone can have their little corner of the fediverse and it has its own attributes.
Completely correct.
On the Mastodon part of the fediverse, we've seen big instances shut down or defederate. It didn't really change much because everyone else could still do what they wanted if they weren't actively on those instances. On Lemmy/ it would hurt a bit more since those communities would have to find new instances to use (but if you're smart you're already signed up to a bunch of different communities anyway)
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The communities on different instances are not the same. You can subscribe to both. The idea behind federation is that one company/server can't control all the traffic. It might result in a little splintering of communities, but I think it's ultimately better to be decentralized.
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