100% agree, and their need for control is a huge red flag. I don't really want them federated tbh. Already they are trying to use their control over several large communities to influence other instances policies.

Which they have been doing. They added a bunch of mods to local communities. But it just wasn't enough, according to them.

Its surpassing [sic] how much they want to control what other people see.

Well that's what they've said from the beginning. They wanted a more curated and friendly instance, rather than having the old reddit culture.