Of course depends on the context, but in a lot of discussions about ATProto, ActivityPub, Mastodon and nearby areas, people talk about "instances" as in "ActivityPub instances that host my data and my profile uses its URL as a 'name'". The blog post is specifically for that context I think.
It's less about trying to hide around the issue, and more reframing how you see the concepts, as people start to associate words with concepts and structures. So when people talk about "decentralized social media", lots of people think about ActivityPub, which typically (always?) has a kind of federated architecture, and the instance is one of those nodes in the network. When these people see ATProto, instinctively (and perhaps rightly so) they literally ask "But why is there only one Bluesky instance that people join?" as those concepts map close to what they know.
Overall I think the post is a good and useful addition to the discourse, with perhaps not a completely novel perspective, but posted publicly for future reference when this inevitably gets asks again sometime in the future, specifically for the people who have these previous associations already formed in their head.