People are missing the fundamental point of defederation. THIS IS A GOOD THING.
You can have an absolutely squeaky clean instance for memes, news and generally huge sharing communities. Instances that dont have to worry about DCMA notices or having their servers seized and you can have instances that are willing to run those risks for niche content. If legal threats start being thrown around, the meme and hobby communities dont suffer. The piracy instances can shut down, migrate and start again, making the lawyers play whackamole.