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Lemmy resembles the old reddit experience so well that they even emulate the old reddit server performance
(self.showerthoughts)
A "Showerthought" is a simple term used to describe the thoughts that pop into your head while you're doing everyday things like taking a shower, driving, or just daydreaming. A showerthought should offer a unique perspective on an ordinary part of life.
Yes, that's how federation works. Your local host may be faster than the instance you are browsing content on, especially if that other instance is getting hugged to death or DDOSed. But even if that is happening, the rest of the Fediverse works just fine.
No, instances are not mirrored. That's probably possible in activitypub (the protocol that Lemmy and similar Fediverse platforms use), but unlikely to happen due to server resources and funding.
Think of it as a bunch of forums on the Internet, where an account made on one forum allows you to comment and see content on other forums, but you don't need a separate account for all of them. Federation somewhat simplifies things, but there are drawbacks that I won't get into here.