Updating the source code of your software goes agains the spirit of a decentralized network? How? The whole point of decentralized networks is that people with different source code/implementations can communicate with each other.
TIL the Lemmy Server code is written in rust, hell yeah
Federated software vendor: we do the dirty work so you can start a new instance with one click.
[0]: https://masto.host/
Since that the original problem is that admins may want to override built-in censorship policies to suit their instance's needs and values, I don't think an even more censorious centralized authority is a great example of a solution.
Using any hosting provider is ultimately a risk compared to hosting yourself, that's the price you pay for not having the know-how to host it yourself.
And even if you do selfhost, cloudflare may wake up one day and say "nah".