I appreciate your take and pretty much agree with everything you said. I've seen the XMPP example thrown around a lot, but the distinction you made with the benefit that Threads gets from federation compared with what Google got is spot on. I'd add that Threads is currently selling the account portability piece as a major draw for public figures warry of needing to rebuild followings on new platforms every couple of years when their current platform goes to shit. That is another benefit to keeping federation, theoretically anyway.

I really like that the fediverse is kind of in a utopian stage right now, people are volunteering to spin up servers and putting their time and energy into making them run smoothly for everyone, people are pitching in with donations, the community as a whole is full of positive early adopters excited about what this could be. Hard to predict where things go from here. Maybe Meta comes in and destroys everything like some fear. Maybe tech firms come and compete and push the small non-profits and volunteers out, and the fediverse just becomes competing big tech platforms. Maybe the tech firms and volunteers/non-profits can kind of coexist, something like the FOSS community where you have some bigger firms making money (Redhat/Canonical) working with volunteers and foundations. Even if things stayed volunteer driven, there is also the risk that an individual instance could get so big that it starts demanding changes from other instances to continue federation or throwing up targeted ads. I think with the Twitter and Reddit fiascos, Tik Tok has begun the enshitification process, we're entering a new post-centeralized social media world, but what that world ultimately looks like I don't know.

I'm cautiously optimistic for two reasons: 1) Threads is bringing more general attention to Activitypub, which is positive in general but especially with Meta making a big bet with their money and what's left of their reputation, and 2) Threads is here, its impractical to think the existing fediverse community is going to erect a giant wallaround them, so I might as well hope for the best cause this shit is happening.