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Maybe people are concerned that smaller instances may shutdown more easily?
Therefore, people would lose their account and be required to create another in another instance.
lemmy.world still has open registration, but it might not last forever. I recall the admins saying that doesn't escalate horizontally yet, so they can run it only in one machine and keep bumping its hardware, but it has hard limit on cloud platforms (if that's the case). Besides, even if they have a home server, completely self hosted, things get more and more expensive as they improve the server.
So, it MIGHT be a reality that at some point the bigger instances will close registration at some point, and people are running to create their accounts on these, as it will probably be "safer".
At some point, it might me easier/possible to make lemmy escalate horizontally, and then it becomes a non issue, but I figure larger instances would still be preferred.
These instances already have thousands of users and have been functioning just fine for years. Their admins have even been upgrading the servers specifically to accommodate for the surge of users.
This fear, if it exists (alot of people are probably just recommending bigger ones because they're bigger), is completely unfounded imo
The point of decentralization, as I understand it, is to spread out and still be connected; would be a shame if we didn't take advantage of that.