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The Fediverse is fine as it is. But some people hope that it is the future of social media which isn't likely at all.
The Fediverse is called decentralized because no one instance has a majority of users. But the only way to make sure that this state continues is if the most popular instances close registration for new users. That's an easy choice to make for the volunteers running instances. More users mean more expense and more work. That's what I mean by choices. A growth-oriented company would not do that.
I don't see what's so special about being able to make new accounts. You can do that anywhere. What you can't do is take your followers, communities, or posting history with you. For many people, that is not acceptable, and not just influencers, for whom their accounts are their business capital. That's a big part of what enables social media monopolies.
I don't see how the Fediverse solves any of the problems with social media. The hobbyist driven Fediverse isn't going to take off. Any professional, growth-oriented instance would have all the familiar problems.