I don't think it's fair to compare large instances existing to fully centralized platforms. I think there is a place for both large and small servers, we need both.
I love the potential I see in the Fediverse and its underlying technology, but I feel like a lot of people here have a hard time accepting that this is genuinely pretty confusing to the average non-techie. Anything we can do to reduce friction and have a recommended entry point for the average casual Twitter/Reddit refugee is a good thing.
It's not like small instances are gonna go away for those that want them. The true beauty of the Fediverse is that we can please everyone.