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Federated systems all have a single point it failure, the server. If a server instance disappears a significant portion of your data does as well, especially if it wasn’t federated. User accounts are a good example of this in Lemmy.
Just because a system is federated does not mean it’s decentralized, whereas a decentralized system has no risk of loss of data if a single system goes down. Federation is not that.
I have up on Pihole a long time ago because of constant issues. Went with self hosted AdGuard and haven’t had a single issue since.