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how much can someone limit the instance? Like can they not allow magazine creation? It would be good for the good folks who run instances to think about scope and set limits. That does mean some large instances will be the backbone but that does not change that small instances will lighten the load and increase robustness.
It’s possible to turn off local community creation, image uploads, etc.
Lemmy.myserv.one doesn’t host any local content but you can easily browse the rest of the fediverse. Having a diversity of server sizes and formats is definitely a benefit of Lemmy that we should be trying to take advantage of.