Some people might find the answer to be obvious (yes) but I’ve rarely found it so. In fact, this is a question I often find in the linux community (regarding linux going mainstream, not lemmy) and people are pretty split upon it.
On one hand, you may get benefits like more activity, more content, more people to interact with, a greater chance you’ll find someone to talk to on some specific subject.
On the other, you could run into an eternal September like reddit, where Lemmy would lose its culture, and have far more spam and moderation issues.
I don’t know, what do you think?
I would say that Lemmy already has a kind of democracy built in, which is that users can pick an instance based on their preferences, and also relatively easily change instances. Or use multiple accounts, anonymous or not. Communities can also be moderated from other users. But in the end, the server admin always has total control over the server, that cant be changed. The main influence that users have is the decision which instance they use (and where they create communities).
More advanced tools like the ones you suggest also sound useful, but seems like a lot of work to implement that. Maybe it would make more sense to some type of plugin system for this logic, so that instance admins can choose their preferred way of moderation.