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I'm going to split a hair here: any endeavour needs to be financially sustainable for it to continue existing. So yes, in terms of future growth of federated platforms, i am mildly concenrned that there may not be enough people willing to put in the work and expense of maintaining an instance just so free. If you imagine a future where the fediverse has Twitter or Instagram levels of users, it's pretty likely that instance owners will want to monetize as much as possible, and then what happens?
why is that "pretty likely"? People have been running services 24/7 for years, sometimes out of pocket, sometimes with basic community support. It does not have to be profitable, as you said, it has to be sustainable, which is vastly different.
I disagree. It's find to have hobbies that don't make money. Running a lemmy instance can be that.
Running any decently sized instance quickly turns from a hobby to at least a part-time job. A thing that you can't just quit whenever is not a hobby and we should be mindful of that.