I should have made it clear about Loops and the centralized service, that it would be an optional layer between the server and the fediverse, not you or users and the server.
The Loops admins will have full control, and also own/store all local user data, the centralized service I mentioned just aims to help solve discovery and other common issues.
No part of Loops will depend on a centralized service or component, and every part of Loops will be open source and AGPL licensed.
@dansup this is a great idea.