Probably a very polarizing question.
On the one hand, having most of the users and communities on LW causes technical issues (see this post), and also gives the LW staff too much power over Lemmy as a whole.
On the other hand, with 18k MAU on LW out of 47k (https://fedidb.org/software/lemmy/), every community listed there has a much higher chance of visibility compared to an alternative hosted on another instance
History of LW controversial decisions
- when they promoted Discord as an official communication channel (https://lemmy.world/post/3478399 - since then they created a Matrix chat)
- when they blocked the piracy communities (https://lemmy.world/post/13320356 )
- when they announced they might move from Lemmy to Sublinks (some comments from LW admins were quite controversial: https://lemmy.world/post/13899357 )
- when they forced the media bias fact checker bot and discarded user feedback (https://lemmy.world/post/18775630 - to be fair, they since then removed it from [email protected] , it’s still in [email protected] )
- when they realized centralization of communities on LW was impacting the ability of other instances to stay up to date (https://lemmy.world/post/13967373 )
- when they updated their rules following a power trip overtake of a community (https://feddit.org/post/2308651 )
Regarding your last point, tools like Lemmy Federate make this less of an issue.
Indeed, I use it from time to time, but from my experience, it seems like LW users tend to stay on their local feed, increasing the visibility of their local communities compared to ones from other instance
Can’t help those who won’t help themselves 🤷♂️
Indeed, but the issue is when one third of the population is there