Yes and no. Federation certainly helps, in that Americans can run American instances and not worry if the EU dislikes it. However, federation wouldn't help EU

Yes and no. Federation certainly helps, in that Americans can run American instances and not worry if the EU dislikes it. However, federation wouldn't help EU users much if the EU state decided to go for full-on Chinese style control, firewalling the foreign-hosted instances, banning the apps from the app stores, blocking access to payment infrastructure, jail for anyone found with the app sideloaded, PR campaign saying this app is used for child porn and encouraging people to turn in anyone they see using it to the cops, and so on.