People are really underestimating the second order effects from the Twitter exodus. It's not just Twitter that has a competitor. It's just a matter of time until all the Fediverse gets enough of a critical mass and then all walled gardens will lose its appeal.
I'm not really sure whether you made this analogy to disagree or to prove their point.
But it does prevent them from becoming the next 2B people social network which will default to becoming to go-to social media to connect with just about anyone you meet in the world.
A $1/month app won't replace Instagram (the article is about IG dying).
- Newspapers, TV networks and streaming services who will offer a "free" account to their Mastodon (or similar) server for paying subscribers.
- "Influencers" who will be hosting their own ActivityPub servers
- Companies who will realize that they can put all their marketing communications under their own control and branding.
- Fringe communities who will be running their servers just because they can.
- Commercial providers who will look for something that can differentiate themselves (privacy, custom clients with special features) and charge for it.
- etc, etc, etc.
[0]: By bet, I mean that literally. This has been one of my side-projects and I've put already a non-negligible amount of time and money into it. Thanks to Musk, my service has seen more activity, signups and inquiries about custom hosting in the past 3 weeks than it has seen in the first 3 years.