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Hmm I’m not sure it’s as simple as that. The things stopping me from hosting my own Lemmy instance is that I don’t see notices about data processing/administrating entity/right to be forgotten/data dump about yourself anywhere on public instances. I don’t intend to implement these myself or share with whole word my home address so that they know where I am located. However the public instances are running fine without this, so maybe this threat of lawsuits isn’t as serious as you suggest?
Same - monarchy’s flaw is that it’s clear who is in charge and who can be (ultimately) blamed. The same thing is simultaneously it’s advantage - it’s honest. For fans of voting - you can have elected monarchy as was a case with few countries ;)