I can see a lawsuit down the line targeting the big lemmy/mastodon instances. I don’t know how it will work but corporations will come up with some sort of discrimination claim if they are not allowed to be federated.

Defederation and independence is IMO the strength of the Fediverse. How will this work in this scenario? You are basically proposing a fault tolerant Reddit, if I understand it correctly. I apologize in advanced if I read it wrong.