I get the idea of instances, like you can make your own and this is good for privacy. But some lemmy instances are much more popular and this in fact makes it another Reddit. If there are separate instances for niche topics, why not make it another community inside a larger instance?
I think you missed the start of the conversation ;) I host my own single-user instance on my own domain, and I was wondering why one (another user) would even think about selfhosting when the fact that it ties their lemmy identity to their server and domain made them not want to selfhost.