TLDR: It’s broken, but It’s still a fun and enjoyable platform!
Very true. It's a lot more stable than it was even a couple months back - I used to upgrade my instance and run into constant problems, and now I can happily git pull without destroying everything.
From a user perspective, a lot of the issues you encountered early on were due to a couple factors - kbin.social was dealing with more traffic than it could handle, and the developers of lemmy added a sneaky thing that would specifically block kbin user agents from being able to federate out to lemmy instances, leading to constant error logs and issues.
I would say that, aside from platform stability, the biggest looming threat on the horizon is spam. Think about email (the original federated message system) - nobody even thought about the possibility of spam when developing email, spam exploded in the 90s, and currently spam control is managed by whichever email platform you're on rather than by the protocol itself, as well as a sort of trust system where newly registered domains are more likely to be seen as spammers. The Fediverse needs to take lessons from email and start implementing the same sort of controls before the issue becomes unmanageable.