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Do people actually like all of the overdesigned clutter to the point where it makes them not want to switch sites?
To me, the stripped down clarity on Lemmy is a feature. I remember back in the day when people flocked to Facebook from MySpace, in large part because they were sick of eye gouging customized pages and just wanted a simple, consistent interface. The content, not the buttons to click on it are the draw right?
I don't know the background of OP so this is just an opinion: I feel that modern UX have become so ubiquitous and streamlined for content consumption that users who aren't used to old-styled UIs see the lack of "sleek" design as lesser. It works doubly so that users aren't willing to venture outside of their ecosystems and will put up with anything regardless if it's detrimental to their experience.
Compare users of new reddit and the official app vs. users of old reddit and 3PA. I used 3PA because there wasn't an official app and RiF matched what I was used to. It's a similar phenomena to Apple users vs Windows/Android. People are just used to a streamlined sleek experience (which to be fair has it's merits) but to say it's superior or that the alternative is lesser is a large misstep in thinking.
It takes effort to go out of your comfort zone but it's saddening to see users mindlessly, for lack of a better terms, consume