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Lemmy has Reddit's political bias on roids and ever since the blackout migration Lemmy has many of Reddit's more power mad mods as active users. Those were what put a damper on it for me. Decentralization is great but Lemmy's version of it with Federation is more like a bunch of little fiefdoms run by admins that can be worse than some of the mods. It'a a fine enough place to have as like a side place to visit but I could not see it as a number one hangout.
But yeah there's a lot of Reddit Alternative folks who think just because Lemmy has decent user numbers it can be the Reddit killer but I don't see it happening.