Probably a very polarizing question.
On the one hand, having most of the users and communities on LW causes technical issues (see this post), and also gives the LW staff too much power over Lemmy as a whole.
On the other hand, with 18k MAU on LW out of 47k (https://fedidb.org/software/lemmy/), every community listed there has a much higher chance of visibility compared to an alternative hosted on another instance
Something to that, for sure. The only problem is if the choices are overwhelming. People like choice when it’s immediately comprehensible and meaningful, and hate it with a vengeance when it’s not. See: https://en.wikipedia.org/wiki/The_Paradox_of_Choice
Mastodon is already pretty good about this with the official app and nevertheless, the most common complaint I heard during the Twitter exodus was that signing up for Mastodon was too complicated. Lemmy is far worse in this regard. The closest thing to an “official” Lemmy app doesn’t even have “Lemmy” in the name, and doesn’t pop up on the first screen of results in Google Play.