would it be simpler for people if we said "server" instead of "instance"?
or maybe some other terminology would be better? lots of people get confused when you ask them to choose an instance, sometimes I think even the word "proxy", "host", or "hub" is simpler
the specific terms aren't my point, just a discussion to see if we can come up with a better name
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And an instance could be hosted on multiple servers.
I get what you mean but no one can check easily if two instances are on the same physical server. At least no one that requires a simplification in what we call instances. Unless I misunderstood what you meant.