Dragging, kicking and screaming is also fueling a lot of the newfound recessive counter-movement. It was also possible because they were democratic societies based on market demand, and it was arguable more due to less forceful approaches than what you are proposing along with more receptive administrations. That is not the Vatican, you'd basically have to change the rest of the world to drag them along with it.
Nothing says you can't find a protestant denomination of Christianity or any other religion that welcomes LGBT+. You can try to drag, kicking and screaming, the Vatican, but don't be surprised if the actual outcome becomes fueling a recessive counter-movement within it.
Like I said, I can't force you to see it.
Being a dedicated content instance provider would also inherently imply dedicating that instance to a certain, more controlled type of content. An authentication instance might want to cater to a geography, which will probably decide to interact with the rest of the world and to provide adequate verification and certification mechanisms. A content instance might want to cater to a geography or a subject, resulting in specialized participation, with certification and verification based on the content, not the user.
You keep seeing monolithic instances that congregate the most communities as a plus. That's a negative in my perspective on the fediverse. It shouldn't be competing reddit clones with the one having the most communities winning out.