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How are we going to pay for all this?
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I was thinking about setting up a Pi to host a small/personal Lemmy instance, do you think that's a reasonable plan? I have no clue how resource intensive Lemmy is. Was thinking it could be nice to store my and friends' personal data on our own server instead of some random remote server (to some extent obvi).
Yes it should run perfectly fine on a Pi, at least for a small instance. You will need to get ports forwarded or setup a reverse proxy if hosting at home, since you'll need to generate a valid SSL cert (i.e. Letsencrypt) to be able to connect to the federation