Lemmy.world became the default instance during the Reddit migration, so I imagine that a lot of other instances would start jockeying for that role and to take some of those mod teams. I would expect a few months of chaos and a reduction in overall posts while the dust settles.

Lemmy.ml has been a bridge between the more normie and tankie communities on Lemmy. Without a middle ground, I see the moderation between the two groups becoming much harder.

Also, if lemmy.ml fails, it would likely mean that the developers of Lemmy have abandoned the project. If that happens, I expect several forks getting made as a new standard governing body is developed.