That's not exactly scaling. If a single instance fails completely then all its users fail to get service, can't even login, that isn't scaling it's a Point of Failure. That instance could itself be scaled but it can't hand off the load to other instances and users can't migrate without their instance being up.
There are other distributed but non scaled features like attachments, in that case attachments are a burden for all instances and probably a limiting factor.
@simon_lucy And what if a centralized service goes down? Well, you’re shit out of luck. Which was the case with Google+, Friendster, Vine and a whole lot of services.
On the Fediverse, the network persists even if one instance goes down.
I can also still read messages from instances that are no longer even active.