Usernames are unique only to the instance you registered with. Someone can be CrimsonFlash on a different instance than the one you are on, just like they could be [email protected] or [email protected].
There’s no need for you to register at all the instances, just pick one and follow the communities you’d like to.
Yes, and if you are using the android app it lets you switch by showing you the instance names as part of the user names. Although it doesn't show the instance for the currently active account.