This way a user can just click, start seeing content and what Lemmy is about, and if they want to comment etc. they will be asked to create an account with lemm.ee selected as a default.
This should fix most of the onboarding UX issues, and eliminate the decision fatigue of trying to figure out which instance is best.
Sadly lemm.ee federates with both lemmygrad and hexbear, which could turn off new users. I think blaze's criteria works best for absolute beginners (sopuli for EU, discuss.online for US).
piefed.social is defederated from hexbear so you may not have seen much of them, but a quick summary: They are a toxic instance that brigades and trolls. Pretty much anyone who disagrees with them is a "lib", they even banned db0 with the reason of him being a liberal, despite him being an anarcho communist.
Most people dislike them, and many popular instances defederate from them.
I feel that's not a great way to onboard people, there is too much happening on the page, and too much friction to get to a point where you see content.