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Technically it wasn't really designed with megainstances in mind that swallows the entire fediverse.
My instance has no problem whatsoever keeping up and storage is well under control. But we're few here subscribed to a subset of available communities so my instance isn't 90% filled with content I don't care about and will never look at. Also reduces the moderation burden because it's slow enough I can actually mostly see everything that comes through.
Lemmy itself is also pretty inefficient in that regard, you can very much make software that pulls instead and backfill local cache as needed.
Even my Reddit subscriptions would be pretty easy on my instance.
You need really small instances for that to do something. The issue here is not only mega instances, but more curcially mega communities.
If people on your instance subscribe to the top 50 communities you already have more than 50% of the whole lemmy traffic on your instance. And 50 subscriptions isn't all that much for even a single user.
And mega communities is kinda the whole point of any reddit-like service. The really cool thing about reddit is that no matter how obscure the topic, there's a subreddit for it with experts in the field. Lemmy is still lacking that for most topics, but that would be where a real Reddit alternative would want to end up.
If you have a look at reddit, they have over 1000 subreddits with over a million subscribers each. Every single one of these subreddits has around 200x the traffic of all of Lemmy combined. So if Lemmy were to grow to Reddit levels and a single user subscribes to a single community like that, your whole instance is cooked.