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this post was submitted on 05 Jul 2023
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For what it's worth, I agree with your reading, and nobody has described what I consider to be a plausible scenario for how exactly "embrace, extend, extinguish" would actually work here.
I don't think Meta should be given the benefit of the doubt or anything and people may have differing opinions about the likely user base for Threads, but I don't think this is any real concern to the fediverse in general.