TL;DR: The current Mastodon-signup is only removing the confusion of users on first glance, because it either hides the server-choice altogether, or leaves them with a choice that is impossible to make at this point of their Mastodon-journey. Instead, it should introduce them to decentrality on a lower scale, with a handful of handpicked servers to choose from, such that the decision makes sense to them and shows them the merits and fun of the concept instead of scaring them away. Ideal would be to give them a sense of agency. Then, chances are higher that they consider migrating again in the future and eventually internalize it as a permanent option of the digital world.
Iirc I heard that is part of this update along with blocking instances but I haven’t yet figured out how to do either, and my instance just logged me out with the update so I finally made the move to eternity and am learning that UI now too instead of jerboa, so it may be a minute before I do figure it out lol.