Isn't the fediverse fragile long-term wise from a structural point of view? I have this feeling that a ton of small lemmy instances will die over the years taking content away (I don't expect this will happen with lemmy.world). Is this something that could happen? Will it be a problem?
One way to deal with it is to add an easy way to transfer users and posts from one instance to another. I'm pretty sure there are tickets about it, but I don't know what's the status of it.
Text is federated between instances while images are hosted on the home instance assuming you didn't just embed an image from somewhere else like Imgur. I dont believe lemmy hosts any videos, but that might just be an instance admin thing.
It is stored on the instance. If the instance goes, the content is gone too.
I don't know exactly will something be cached, but even if it is, eventually it will be invalidated too.