The alternative would be taking away power from instance owners, which is its own form of abuse.
The only 'problem' here is that most communities are proud to abuse their power when it suits them.
The solution is to make more communities that do not abuse their power. Unfortunately, people are afraid to do that because the abusive instances with threaten to "defederate" from instances that do not share the same agendas.
Not really.
You can make your own instance and moderate it better. You can split up power however you want.