I see that as a pro and a con. If one narcissist manages to get to a position of authority, they can’t derail the whole network. That also means that people can form their own echo chamber islands of like-minded instances. There could be the main island of random interests and then a separate extremist island of all the instances that got defederated from all the big instances. Not an ideal solution, but it’s still better than a fully centralized Reddit.