Exactly, when dealing with big data, you need a strategy to archive old data. You can't just store everything in one DB. Smaller instances may not feel like keeping all the date from all the time. Even big instances should have a mechanism to move old data do different databases.

As I know, they defederated, because of open registration policy, here's a full post https://beehaw.org/post/567170. The point stands, federation doesn't work as of today.

Yeah, that's the point.

Well, beehaw defederated lemmy.world, so by this logic, we're all nazis.