what does it mean that Beehaw "defederated" from lemmy.world?

https://lemmy.world/post/156955

what does it mean that Beehaw "defederated" from lemmy.world? - Lemmy.world

I thought I understood, but I still have Beehaw content in my feed, so I guess I don’t understand after all… Can someone dumb it down for me?

participate the effort to create an alternative to Reddit people leave Reddit to join the alternative be unable to handle the influx of people trying to use the alternative to a website with millions of users

Their reasons are much more selfish than that. They insist on only having 4 moderators while never scaling up, and they don't like how federation allows users from other instances to post on their instance because it disrupts their rigid ideal community vibe. According to their suggestions on "improving moderation tooling", the ideal federation setup is that their users can post on other instances, but other instances' users can't post on theirs, so they can save time on moderation work. The moderation work of other instance admins for their users doesn't matter, clearly.
Is that right? That seems not in keeping with the spirit of the thing. If they don't want to moderate large communities, how about you don't host large communities at all. Maybe that's what they're after, but they had seeded the space with a lot of logical communities that people were going to click on from the "find federated communities" pages from around the fverse.
It seems like they really just want the well made, actively developed message boards software, but they dont truly want the federation stuff.