Saved for later, but small startups/operations always know the will play second fiddle and be the smaller guy.

His lack of worry seems to be founded in Meta Defederating, not federating, though. Meta would do more harm by being a part of the community than by leaving a ways down the road. It seems like a particularly myopic view of possible problems with Metas move.

You absolutely should be. If Mastodon instances will start federating with Meta I will defederate them. And move my accounts from any instance that federates with them.