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Well said. I don't disagree with a single point you made, and some of it echos concerns I've had since day 1. And extra points for calling out .ml
as lemmygrad-lite. I think I've called it exactly that as well.
The only thing I really have to add is on the topic of toxicity. Like you, I'm an instance admin and have a bird's eye view of a lot of behavior patterns. I've recently started wondering how many people are here because they're too toxic for regular social media rather than because they want to be here. I won't guess an actual number, but I would say it's not insignificant.
I'm firmly the latter case: I want to be here, I want this to succeed, and I'm trying to put in the work toward that result. And I've interacted with lots and lots of people in the same boat. But, like you, I'm also growing disillusioned for many of the same reasons.
On the bright side, I've gotten much less rusty as a developer after having to write scrips and tools to fill in the massive gaps in moderation features.