It seems everything is doomed these days: https://raddle.me/f/lobby/155371/warning-lemmy-doesn-t-care-about-your-privacy-everything-is
EDIT: Looks like lemmy is totally fine and we can feel like home without worrying too much.
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This is the case with every hosted service. It isn’t a choice, it is just how data storage works. Things are always saved on someone else’s machine. Or, in the case of federated systems like KBIN or Lemmy, many people’s machines.
Your data is open and accessible to all. That’s the entire point of federation. Nobody owns it.