A large company is no more immune to that than a small one, or a community run site would be.
And at least with an individual or small company/group, you have someone to put your case to in that situation. Someone who can probably offer support and potentially lift the ban rather than the 'Get fucked' attitude of Facebook, Google, etc.
The server admin can kick you off just because they feel like it. At least with a large public platform there's the possibility of public exposure of bad behavior.
I don’t want to be in a position where I’m defending twitter but need to remind federated instances are run mostly by normal people. Having the cake and eating it and all that.
In terms of utility for social networking, there's no defending Mastodon relative to a Facebook or Twitter. The small userbase is reason enough not to switch; what use is a social networking site if the people you want to interact with aren't on it?
That there are so few if any people who both recommend Mastodon and don't have moral/political objections to Twitter is damning. Where are the objectors who recommend it on purely descriptive grounds? It's a bit like GNU - it's cool, but don't try to tell people it's a viable replacement for Windows.
This isn't different than other websites. It's true of web forums too. It's fine, just don't post anything you can't afford to lose.
Experience: on my third Mastodon account. The first one disappeared without notice.