Its now running on a dedicated server with 6 cores/12 threads and 32 gb ram. I hope this will be enough for the near future. Nevertheless, new users should still prefer to signup on other instances.
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I assume it’s for the sake of more freedom. Without admins to make troubling choices like in the case of reddit, lemmy can’t be corrupt so easily. I’m quite new to this as well, but from what I’ve seen, the most lemmy can do is unlink certain instances so they don’t show up in your search, but instances may live or die, but the social network as a whole lives on (except if the killed instance housed your account).
They meant horizontally scaling this instance (multiple servers serving the same app)