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do you think they would spend their little money on this?
You mean the multiple millions of VC money and crypto investments? Absolutely.
The Matrix foundation also would have plenty of money if it wasn't just a front for Element and most funds being siphoned off to pay for services provided by Element.
Yeah I would assume if anything they would have helped them bring federation
Not sure if that is still in their FAQ, but the Stoat devs previously said that they don't want federation, and if that ever changes they would likely prefer XMPP over Matrix.
They said they were open to it but they had zero priority of doing it themselves, and essentially "submit a PR if you want it". A shame really, their interface is great, and such an easy setup. If they implemented either xmpp or matrix I would switch immediately. All of my friends want a discord clone that "just" works, but no one wants to go to this server for this group and then login to that server for that group. They want a single-pane interface like what discord offers.
Shortsighted to not implement that IMO.