The risk is that Mozilla is in a position to add features and stability at a rate that smaller developers cannot possibly replicate. By doing so they risk becoming the defacto standard (embrace/extend). Then they get to dictate what the entire platform should or should not do. And you’re either on board or left in the dust. And if Mozilla decides that moderating a social network is too much of a liability, then we’re at extinguish.

To be frank, I’m so jaded by big players in this late stage capitalist world that I don’t trust anyone I might otherwise be fine with, like Mozilla.

I think the problem there is that if the fediverse were to be adopted by the masses the general population wouldn't pay attention/wouldn't even care and just use whatever instance was most convenient for them, and if an insurance has a large proportion of users it inherently has power over the entire network

If meta entered properly like everyone thought they might, they could massively control the entire fediverse by threatening defederation with instances that don't comply with their rules. Because they have so many users and generate so much content no instance wants to be cut off

That example probably wouldn't work for the fediverse as it stands right now as we're pretty much all nerds, dislike companies like meta and probably wouldn't enjoy the content generated by its users anyway but it stands as an example