I don’t disagree that it’s a weakness. But that just is how it is for now. I’d guess that it will settle down to a few dozen “strong” instances that are all federated together, with hundreds more smaller instances available, but right now there are like 5 super-packed instances (lemmy.world, sh.itjust.works, kbin.social, etc) which are getting killed with a double-whammy: all the users and all the communities are on them.
Why would you create an account on every server? You can access any community on any server that your server is federated with.