World was already the biggest by far when I first started lurking back in July, and it's just getting more dominant. Before, there was quite some diversity in the distribution of generic communities, but nowadays the vast majority of posts that reach the top are from over there.
I really can't see any specific virtue that it has; uptime is not the best (or so I've heard), the moderation is quite lacking (which is demonstrated by the fact that Beehaw defederated them), they make some unpopular moderation choices (like blocking !piracy@lemmy.dbzer0.com), and overall the atmosphere is a lot less... nice than those of smaller instances.
I also feel like it goes against the idea of the Fediverse that one instance has control over most of the platform. Especially on Lemmy, where communities mean that building community within an instance makes so much more sense than elsewhere, and upvotes are federated near perfectly regardless the size of your instance, decentralisation makes a lot of sense. It really just doesn't make sense to me that Lemmy World is where people are going.
it is not clear what your expectation is, tho: should people somehow magically load balance between unknown alternatives? What exactly is the point beside 'big is bad'?
there is no point. instances that get too big for their budget can pause sign ups anytime they want.
True, it is really up to the instance to decide if they want to stay small and turn off registrations or big and keep them turned on. So long as the instances of all sizes stick to the official standards of the Lemmy codebase and respect the specs of the various other federated systems. It is not really an issue that the average user should have to worry about (for most issues at least).