It’s over 9000 by now.

In theory it is a horrible idea. No port like this ever works out. An incremental approach has much higher chance of success but will take long.

It’s perhaps a communication problem, where the privacy settings should clearly state this. Or these settings shouldn’t be offered. But maybe this current structure is fine for most people?

Regardless, it’s how existing social media used to work. In that sense, federated social media can’t offer an alternative and that could be a problem for some.

The wording can be improved, I think “maximising profit” would fix it. Which is obviously what OP meant as we all understand it.