Right? Currently if an instance fails then all the communities hosted on that instance and comments are essentially 'gone' correct?

That's not entirely true. Plenty of FLOSS software exist that are also run by corporations.

The secret is that corporate FLOSS maintainers are "service providers" and make their living that way, but the code is a public-access creative output that allows others to render that service.

It's a somewhat implicit contract of saying "Live and let live, since I'm technically have more power strictly because I designed the darn thing." Sorta scratches the ego and also allows freedom for everyone else at the same time.

TL;DR: Yeah, I 100% agree, if everyone had a strong safety net, we'd be much better off.

When it works it works. I mean I have met several people who've expressed a lot of sincere dissatisfaction with the VA's medical services, including limited access to mental healthcare among other things. Particularly of concern is the high degree of veterans who end up on the street--many with severe mental health issues, with some even self-medicating and/or dealing with addictions.

Of course, I'm sure there are more factors that contribute to homeless veterans than limited accessibility to medical care, mental healthcare, and other social services provided by the VA--but it is important to consider.

..and of course, as you are aware, it's better to have those social systems in-place than nothing at all. Even when run to a degree of mediocrity, socialist programs can and do tend to benefit a population. While not everyone may like the Supplemental Security Income and FAFSA programs: without them, I wouldn't be able to attend a university as a future job-seeking student.

Specifically without SSI, many who are unable to pursue a degree would end up homeless and hungry, becoming a greater burden on society. In my opinion, it's unfortunate that you have to have a disability in order to qualify for this safety-net program; as I know several people who turned to less favorable means of providing for themselves, because they were rock-bottom and didn't qualify for any programs.

So, yeah, the VA program, and many other programs in the US are great examples of both some of the harms, but also the significant positive benefits that socialist policies can have for a population. Indeed, the greatest harms done by socialist programs in the US seem to be caused by their limitations and inability to properly serve enough people. Providing a everyone access to a solid safety net would do wonders for us as a society and for our economy.