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What are your goals?
I would say it’s really a combination of the instances policies and their jurisdiction, and in terms of jurisdiction it also depends on where you live (e.g. you may have more protections under law if the instance is hosted in your country)
There’s also nothing stopping you from using multiple instances — siloing your interaction in different types of communities in different accounts on different instances. This may be useful if part of your privacy concerns are having all of your post / comment data on one account on one instance.
Edit: You can also use an email aliasing service to avoid even giving your email out. There are aliasing services such as Addy.io, Simplelogin (subsidiary of Proton AG), Firefox Relay (Mozilla), as well as some email providers which provide (iCloud, Proton, Mailbox.org to name a few)
I find it’s just a lot of effort to go through visual customization for very little benefit, I have spent more time creating rootless podman images for certain apps, custom scripts, keybinds etc.
What I mean to say is there’s likely many people who customize functionality of their systems one way or another — without ever touching the visual side of things much beside maybe changing the font or turning dark mode on.