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There definitely is a critical mass needed for social media. Reddit hit critical mass around 2012 when digg imploded. When I joined reddit in like 2010, it felt very much like Lemmy currently does.
I think that’s a major problem with Lemmy, because it’s so disjointed it’s hard to hit the critical mass needed to keep conversations interesting and fresh.
No, I think they’re being literal. There is value that they want in your privacy.