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What happened to the main Piracy community
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Are you sure that's true? All content from all other federated servers are hosted on all other servers? That certainly doesn't sound right; I thought that the fediverse protocol just allowed us access to other servers running the protocol, not that our instance actually runs content from their instance.
Yes, this is how federation works and it's the main point all those users that are bitching about the move do not understand. LW does not care about piracy, they are afraid of legal consequences, because with the federation protocol you are hosting all content of other instances. It's not embedded, it's mirrored, so there is no legal difference between the origin instance and the federated instance.