There was some talk of this issue in the recent fediverse inefficiencies thread. I'm hopeful that in the future we'll have a decentralized solution for file hosting but for now I deeply believe that users should pay for their own file hosting.

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[–] abff08f4813c@j4vcdedmiokf56h3ho4t62mlku.srv.us 1 points 3 hours ago

This issue already exists, regardless of the embed server problem. Right now, images posted by users to an instance get sent to that community's instance and then copied to all instances of all subscribers.

If anything, the embed server provides a potential solution - rather than federate the image directly, simply link to the copy of the image on the embed server. (I've done some customized code changes on top of pyfedi to implement this idea there.)

I imagine instance admins would still want to to monitor and delete links to CP, but under this idea only the admins of the embed server and their delegates would have the ability to remove CP from the embed server itself. (Should they delegate this ability to other instance admins? Probably only on a case-by-case basis at most.)

Perhaps they could support a reporting functioning from mods and instance admins though..