So, I guess there's three lessons here:
1) If your instance is literally controlled by a (supposedly) Benevolent Dictator For Life, make sure they are benevolent enough not to blow the entire thing up when they get angry.
2) Losing a large instance isn't really a big deal in the long run; we might lose some users but many will just go elsewhere. The fediverse is resilient.
3) Destroying something to prove a point or because you're angry reflects more on you than it does anyone else.