Yeah, I understand that, and I agree.
I did not expect that to happen. When I learned about Mastodon, I thought, that anyone who runs their server like that would loose people. So, did the game theory play out differently? Or do the users want it?
I suspect it is the latter.
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I say this because one reason I use nostr is the selection of people. Here it's "achieved" by nostr being obscure. Over there they do it by banning.
If the users prefer it, the market will reflect that. Mastodon is still tiny. And you seriously can't expect an average user to setup their own server.