I haven't read everything in this comment yet because to be honest it's a lot. But one fundamental thing I think you misunderstood about what is said is the bit about it being illegal to self host. While there's no law against using residential broadband service for the purposes of a web server, there's definitely a lot of sections of the TOS for broadband service that prohibit this and those have been deemed to be legal and enforceable.

I claimed everyone can't afford self hosting, and that's because it's true. Not everyone has the kind of Internet setup or computer that would allow it regardless of what you're saying about older computer's and raspberry pi, and that doesn't even take into account the fact that it still requires technical knowledge, not just of running a server or a network, but also of the security measures that would be required to do so to protect yourself.

The thing is, you hadn't before now, laid out what you assumed that the fediverse in your vision would function as, you just threw some quick terms at me attached sort of tangentially to the fediverse and assumed that I would know what you meant. I'll continue reading this when I have more time but, I just don't understand the motivation anyone would have to join Subway's instance. Or why they'd want to be federated with it.