I don't agree with "more privacy". Data is federated, so anybody can easily scrape and gather data.

Even upvotes/downvotes are public (even if your client doesn't display them, you can get the list of users that voted your post/comment through the API).

You can be anonymous, create multiple accounts on different instances, you can use a client with not trackers, etc. but I wouldn't say there's more privacy.

That is not necesarily true. An admin of an instance definitely can sell info. Same for respecting privacy. You do have more freedom though, since it's federated, you can research whichever server you think aligns with your views/needs and choose that one while still interacting with the rest.