I had a look around the code a while ago, and not only is it lacking in moderation and administration, it's also very much lacking in the distributed computing department.
It's essentially set up in a way that all instances store close to all of the data and that with more instances the traffic and compute costs also scale terribly that way.
Lemmy is pretty close to the limit of its technical capacity.
I wish they had set Lemmy up as a bunch of basically phpBB forums with federated single-sign-on and frontend that can access the backend of all the separate forums transparently. That way each instance would have to only moderate, store and serve their own content instead of multiplying all the work for each instance.
Case in point: The โฌ1950/month that the .worlds cost is close to โฌ1 per active user per month. That's a crazy amount.
For a phpBB forum with ~2000 active users you'd expect to pay maybe โฌ50 per month.