Many people that I talked to about it think that this will be Meta's attempt at an "EEE".
probably. but the normies wouldn't have joined a federated service anyway. and when the "extenguish" part comes, it will just go back to the status quo (i.e. normies on private FB service, the rest of us on federated instances)
Some Mastodon instance admins that I chatted about it say that Meta will "likely attempt to pull their user data", and they "will defederate immediately".
got bad news for anyone that thinks meta wouldn't just run a crawler and scrape anything they want from your server.
at worst i'd see this as a net-neutral to the fediverse.