My main issue with it is the fracturization of communities. If I understand it correctly, someone could create a "cars" community on lemmy.world and someone else could create a "cars" community on another instance. Neither community gains enough traction to take off but if they had all been one it would have worked.

That seems problematic to me. Am I understanding it wrong?

There's already a lot of traffic on Lemmy. I'm constantly surprised to see posts with 400+ responses. I think it's already hit critical mass (Enough activity to keep people here).

I want conservatism to thrive. It does have a place in a healthy political system.

What place is that? Conservatism at it's core is about maintaining the aristocracy/hierarchy. That's what it started as, and it's never wavered from that mission. All of the claims towards 'conserving what is good' or 'fiscal responsibility' or 'protecting individual rights' are just that: claims. They have never acted in ways that would back those claims up unless their actions also helped maintain/promote the aristocracy. The rest is just noise and propaganda designed to make their positions sound palatable.

I don't see any place for that in a healthy political system.