The point of federation is not to be dependent on oligopolies from a single country, one with poor grasp of and legal enforcement of personal privacy at that.
>It kinda loses its point.
Even if it comes to this, it doesn't. Another migration can happen at any point, but this time you wouldn't lose your social contacts - and in the future hopefully neither your content.
>But Google and Microsoft got in the game.
That's like your common anti-Linux argument.
>Search engine indexing for these federated services SUCKS.
Decentralized content/link aggregators just became popular so we'll see what'll happen, but personal social media shouldn't be as public for most people as it right now anyway.