I don't care enough about the fediverse to waste my time on that, and if I did I'd probably go with piefed anyway.
In any case, as I said in another post you can trivially check for yourself how removing the proxy fixes the issue (in short, grab the url from any image posted in the frontpage or wherever, remove the proxy bits and fix the encoding, and it'll work without any issues).
Ah, yeah, microsoft, the other one of the first three companies that'll try to do this.
(They're already messing with windows and 365, also paid products, so they'll end up messing with azure too sooner rather than later.)
Sure, and the EU will probably fine them into not doing it here, if we haven't kicked them out and replaced them with something local yet.
The rest of the world will probably be screwed, though.
But no, seriously, I do envy your faith in humanity.
Treasure it. It won't last, tragically.