why does a multi-reddit need multiple instances to collaborate to create the feed?
by "create the feed", I assume you mean "provide posts" when API call post/list is called?
content is replicated in all federated instances. You only need to use the local copy and merge all the communities of the multi-reddit.
Yes, that is what MultiPass would do, query the local PostgreSQL database. Right now Lemmy only allows this for a single Subscribe/Follow list per user... you have to create 3 different logins if you want 3 different lists of communities. For example, a "games" list, "music" list, "news" list.... Plus, the current design does not accommodate logged-out users, they have no way to list multiple communities (other than "All", local or merged remote+local).
which is why I actually want it.
I think a well-cultivated list of quality communities that people share is a means to escape the heavy amount of noise that grew out of the explosion in the number of low-effort barely-any-moderation instances.
Another way to look at this feature is really simple: multiple subscribe lists, the ability to organize what you subscribe to into your cultivated groups. I don't see why anyone thinks a limitation of having only one community list per login is beneficial in organizing the duplicate choices all over the place.