No, it indicates only that the administrators of 90% of the network don't want others to hear what you have to say. If the admins don't want to hear you they'd use the block function.
I expect clients that combine timelines from alt accounts using different servers to become the norm. Users get all the benefits, with more ability to opt out. If I've got Jim@alt.net on banning-instance, and Mike@tim.com on the banned instance, and their timelines are combined client-side, it's the best of both worlds.