I also agree. "Federated" is not a killer feature. Simplicity is, and that needs to be a priority.
'Privacy' itself is barely a feature - people do care, but it's rarely #1 on their list.
Techies viewing this from the more strategic, systems perspective have to get into the headspace of individuals to see it from a 'user centric' perspective - because the answer to many of the questions lie there.
For starters, very few people care that Facebook for example is 'centralized' - they care about the material value offered to them 'right now' which is to say, access to their friends, posts, information etc.. Everything is is a distant second. Issues that do not directly affect their experience an even more distant third.
The same seems to be pretty much true of "federation".