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As far as I'm aware, you can host your own Bluesky server, but the main servers don't federate with anybody else so it's a moot point.
What is the concern? That if Bluesky falls, the instances fall because of the choke-point?
Isn't this their plan in the long-term? (Article from February):
The concern is that without true federation Bluesky is still for all intents and purposes a corporation-controlled social media, just like Twitter, and therefore subject to the exact same enshittification cycle.
I'll believe they'll add true federation when it happens. Color me sceptical, but I'll be happy to be proven wrong.
You can self host your data but you have to rely on the main Bluesky servers as a relay. It’s still centralized. Using other relays will be too expensive to be feasible
exactly, it's just virtue signaling at this point. they have no intention of competing with third parties by legitimizing them through federation - because bluesky is a corporate service and it exists to generate profit for its eventual shareholders. this is the exact thing that let google and facebook kill XMPP. and what google, microsoft, yahoo, and apple - are doing to the email protocol right now.