Wikipedia has done well for itself using donation runs and grassroots support, so if there are ways for instances to do similar the decentralized nature of this will work out ok.
Elsewhere the issue is many of these large services have grown to the size of effectively being a public good, but good luck maintaining a public good in a profit generating way as a private company seeking the next quarter’s growth.
Yep since the first party app’s primary goal is to generate revenue (over actually providing a good user experience), it’s packed full of everything to achieve revenue generation:
Third party apps don’t have revenue generation as their sole highest priority (if at all), so naturally they strip out all of that stuff which makes for a terrible user experience.