I don’t really care what instance they’re from, but I do care who they are. It’s like if we just went by our first names here, there would be so much confusion with common first names. You’d need to at least use their last name to know if they’re the same person or not. With federation, you can have the same name as someone else on a different instance. I don’t really care where they’re from usually, but it is important for identification.

In my opinion, this is less declutter and more obfuscation. There’s potentially important information that isn’t being shown. Often it isn’t an issue, but sometimes it is.