On the one hand, having most of the users and communities on LW causes technical issues (see this post), and also gives the LW staff too much power over Lemmy as a whole.

On the other hand, with 18k MAU on LW out of 47k (https://fedidb.org/software/lemmy/), every community listed there has a much higher chance of visibility compared to an alternative hosted on another instance

History of LW controversial decisions

when they promoted Discord as an official communication channel (https://lemmy.world/post/3478399 - since then they created a Matrix chat)
when they blocked the piracy communities (https://lemmy.world/post/13320356 )
when they announced they might move from Lemmy to Sublinks (some comments from LW admins were quite controversial: https://lemmy.world/post/13899357 )
when they forced the media bias fact checker bot and discarded user feedback (https://lemmy.world/post/18775630 - to be fair, they since then removed it from !news@lemmy.world , it's still in !politics@lemmy.world )
when they realized centralization of communities on LW was impacting the ability of other instances to stay up to date (https://lemmy.world/post/13967373 )
when they updated their rules following a power trip overtake of a community (https://feddit.org/post/2308651 )

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[–] Blaze@lemmy.blahaj.zone 7 points 1 year ago

Definitely, but I guess the amount of sysadmins wanting to operate a lemmy instance is limited. Add to that the CSAM and other nasty stuff that happened at the beginning, and only a few people would be okay to manage their own instance.

Also, even a topic-focused instance would suffer from the lack of population. How many interesting topic can you find for a population of 50k? That can't be too precise, because you are talking to a very small population. Well, I guess that's why db0 and slrpnk are doing well, piracy and solarpunk are popular among Lemmy users (as well as whatever the political stance of lemmy.ml is)