Nature knows how to solve this problem.

You are allowed to discuss piracy. You aren’t allowed to facilitate piracy (I.e. providing links to pirated content). It is illegal in the country where this instance is hosted.

Defederating cuts off the whole instance. They just blocked those three piracy communities as far as I understand.

Remember that lemmy.world has to keep a copy of whatever content appears in a federated community on their servers, making them legally liable for the content. At least they just blocked the community instead of defederating.

A strength and a weakness. The strength, as you say, is being able to move to a different instance. However, the weakness is that Lemmy (the software) requires each instance to keep a copy of every federated post for its users to interact with. This means they have to host (and be legally liable for) data that they can’t police beyond blocking the community / instance.

This is the solution. Communities need to congregate on smaller, like-minded instances. It makes sense to concentrate users on large instances, but communities should be spread out.

Not really - it isn’t prediction, it is early detection. Interpretive AI (finding and interpreting patterns) is way ahead of generative AI.

Like I said - there is a small vocal group who few that Lemmy as a whole should be boycotted due to the developers’ political views.

You will find that very often the scams, advice, self-help, doctrine, etc that draw these populations have one thing in common: if whatever it is doesn’t work, it is because you are doing it wrong, not because the guidance is bad. That’s why conservatives will defend the tax rates of people who have 5 orders of magnitude more wealth than they do - they believe that it is their own fault they aren’t rich, and that anyone can become rich if they just try hard enough. It is why religious conservatives will still attack birth control in the face of their own kids having unwanted pregnancies. It is why natural medicine people will defend their practices even after it sends them to the hospital. They are more willing to believe that they themselves are at fault than the principles they believe in.

The Protestant Work Ethic equated Christian values with material success.