One thing I’m not clear about is the impact my home instance has on me. I joined lemmy.world and am currently using the connect for lemmy app. I know when I sort by Local it will only show me posts from lemmy.world, but beyond that are there any things to keep in mind?
I have read that lemmy.world has been hit by DDoS attacks but I’ve never had any problem using connect for Lemmy during those times as far as I know.
To kind of answer one of my own questions after rereading all the comments here, defederation seems to be per-instance, not from everywhere.
So picking a smaller, well run, non-controversial instance for you account can be an advantage, as you should be connected to everywhere.
The risk seems to be that smaller instances have a higher risk of shutting down unexpectedly and/or not being as well maintained (updates, security etc).