No what you are presenting is an argument for services that meet the needs of dumbest assumable users and centralization. It's the same unreflected argument as has been repeated over and over when it comes to Mastodon and it boils down to "everyone needs to be there or else it's a failure". Services like that obviously are fine too, but there is more than enough people that don't need or want that.
It speaks for a certain narrow mindedness that everything needs to be Silicon Valley's next big thing that will someday rock the stock market.
In reality Mastodon does not have the size of Twitter, and you might find it too difficult to use. However not everyone is that way, and it has over the last months proven to be a good alternative for users. It's potentially the same with Lemmy: It only needs to povide a cool alternative and enough users for meaningful interaction.
It does not need the popularity of reddit to be valid. And it does not need to be designed explicitly for the layperson. (not an excuse for a bad UI, but with new Reddit the bar is incredibly low there, and Lemmy seems fine)
> I find Lemmy frustrating to use
Well others don't, and that is fine. For me personally: not everyone needs to migrate to Lemmy (or another federated alternative), only the communities I care about. And the same can be true for other people as well.