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It disregards the benefits of a distributed platform. Imagine if the admins went rouge, or the server data was irreversibly lost, suddenly all that content would be gone or under the authoritarian rule of the admins. Bit dramatic but you get the point.
If the majority of content is on there, we've quite literally taken a decentralised system and centralised it lol
On a more technical level, it takes quite some ressources for a server to broadcast their communities to all other lemmy instances.
"Receiving" a remote community is just reading data and inserting it in your instance. But if a community is hosted on your instance, you have to send that data to each and every instances with at least one user subscribed to it.
So it's really better for everyone to spread out on as many instances as possible. The only thing I would recommend before setting up a community (or your user account) on an instance is to check if you align with their moderation rules/code of conduct.
We did it ~~reddit~~ err... sorry guys... old habits and all
No. I think the other instances would need to purge that content right? I could be wrong.
Assuming it’s federated. And someone from your server is subscribed to that community.