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Lemmy and GDPR - What is the current state?
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Well... that's just kind of how it has to work. Storage is cheaper than bandwidth and it's not a close contest. Historically, storage costs have fallen faster than networks have grown and it is probably safe to assume that this trend will continue indefinitely.
FWIW: The stuff that gets federated is all text. Image uploads aren't federated at all -- those are just shared as URLs which point to the instance wherein they were originally uploaded. This is actually why things like avatars are currently so unreliable on Lemmy -- they can't scale well without there being local copies.