users can easily create new accounts on any random server

That's not really the ideal scenario though. Perhaps it's fairly inconsequential for you personally, but I'd personally be rather irritated to need to create a new account, not only needing to re-subscribe to all the communities I followed, but also finding replacements should that instance that contained them go down.

However,

the direction that a lot servers are going, with having to type a paragraph to join

I have yet to encounter this, but this does sound positive.