Best way by far would be to implement user-side blocking for specific instances. I personally don't want to see the corporate cesspool that Threads will be. But others might. And the fediverse as a whole will profit from more users and more mainstream engagement.
User-side blocking would combat the content-fragmentation problem and ads. Privacy is not really an issue (as already said: anyone can scrape your shit from anywhere anytime. If you don't want your personal data on the internet, then dont put it there)
It also keeps the power to the people. Moderation by people in charge of instances is really important ofc. But the last thing I would want is for them to become people dictating user behavior (as it is with some Reddit moderators and subs). Thankfully that's not the case here, but if we could keep as many decisions as possible to the users, that would be great.
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