this post was submitted on 10 Mar 2021
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But this topic isn't primarily about privacy. Yes privacy is also potentially effected (but as you say not that likely), but what this is mainly about is network resilience (and also censorship resistance).
Edit: Note how it wasn't even posted on the privacy community :p
If it comes to resilience, shouldn't those who manage an instance worry about having a backup to upload to another provider's server by changing the DNS record in case there are problems?
If so it is not a Fediverse problem but a problem of some administrators who naively do not follow good practices in general.