My intention was not to hate on it, I think it’s a great project, but just to make people aware of considerations.

But it’s configurable right?

On your self-hosted instance? Sure. On the default instance? No.

I’d argue that not everything needs to be federated.

I agree, but it is nice to have.

wouldn’t being federated and encrypted not really work out?

No, lots of platforms that are both.

What would be the point in encrypting all communication between the server instance and client, to then federate it out to other servers?

So you could communicate with people on other servers securely?