A hard link to an instance is an issue. Instead of depending of a "centralized power", you depend on a "local power". This is, probably, irrelevant in the begging, but later it could cause a drama similar to reddit - like you build a community with 100K people and then instance owner comes to you and say that you must do "X" or leave.

The ideal way to address this would be a possibility to move an account AND a community from one instance to another.

Here's the Mail from Meta in question: Kec Quirk via Fosstodon.

Why should Instagram buy some instance? The software is FOSS, they have a shitton of servers, they can host an instance that is a thousand times more powerful than all of the Feddiverse combined just with their idle stuff. Defederate it if it sucks, but the goal should not be a bunch of ivory tower hermit fortresses with the bridges drawn up.