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I still don't understand why that's the barrier to entry for many people. It's like people want to be enslaved to a monopoly on purpose.
Because it has a huge impact on the user experience. You primarily see content from the home server.
In case it helps you understand: barriers of entry to Mastodon, from my perspective as an ex-Twitter user and current Bluesky and Mastodon user (note it took me 4 tries over 5 years to actually "enjoy" Mastodon)
Bonus things that probably don't serve as barriers to entry but are real issues for active users:
This is not to say other platforms are perfect. There are plenty of things I don't like about Bluesky. This comment is specifically about Mastodon.
So first of all, the commercial platforms had a lot going for them that the Fediverse doesn't.
People showed up to the commercial sites with enthusiasm and motivation. People show up to the Fediverse as reluctant emigrants, rats swimming away from a sinking ship.
Then you hit them with "Choose a server. Your choice doesn't matter because you can get to all content from them all, but you have to choose one." People don't like making pointless choices, being told "this choice doesn't matter. make it." doesn't grok. Feels frustrating and suspicious, especially when you're told it doesn't matter, and then they try to give you reasons to choose one over the other.
So when presented with a choice they're told doesn't matter, people are going to freeze and/or say "fuck this" and just go back to the thing they've already got set up. They don't have a lot of push to make this work and they just hit something they don't like before they've even gotten in the door.
I see two ways to fix that: Eliminate the choice and randomly assign newcomers to a server automatically, or make the choice meaningful and express that meaning to them.
People saw the servers and it reminded them of how world of warcraft worked