I saw this earlier in !meanwhileongrad@sh.itjust.works and it's pretty bad. I'm in favor of defederation, at the very least to help cut some of .ml's network effect on the Fediverse. Since many of their communities are insanely large and they're also very well known for banning people for let's just say less than justified reasons. Nutomic's transphobia is really the last straw in my opinion. If people are interested in looking for alternative to popular .ml communities, !de_ml@lemmy.blahaj.zone is a good place to look.
I don't think anyone needs to stop using or break away from Lemmy like people say. Lemmy is open-source and can easily be forked. Lemmy's devs don't have the authority to deny people from using Lemmy either. Instances operate independent of them, and since many instances are already here and using Lemmy, switching to something completely different and incompatible would be extremely damaging.