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Well IANAL, but the main concern raised in this article seems to be GDPR related questions of sharing of personal data. The GDPR however has a relatively narrow definition of what “personal data” means. Public posts are AFAIK not “personal data” under the GDPR.
To my knowledge Mastodon does not exchange “personal data” as defined by the GDPR (such as email addresses etc.) between instances.
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I can totally see what this person means, but let’s be honest Mastodon is a social media, everything is public. Centralized or decentralized it’s a bad idea to implement e2ee in a social media platform