Is there any evidence that Reddit has suffered at all from the exodus to Lemmy?
Was there even a mass exodus? I largely avoid Reddit now, but I do kind of doubt that they've been hurt in any meaningful way by all the protests and people leaving...
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Don't allow users from the EU to sign up? Is that your plan?
Seems to be the plan for an increasing number of social media companies. As far as Lemmy is concerned, if it and other related services get killed, that just drives us underground to the darknet and the old tried and true chat services still being used there. As the old saying goes, can't stop the signal, and every empire falls to ruin eventually. We'll see how long it takes for Rome to crumble this time.
Wouldn't it be easier to fix the delete federation bug so Lemmy could comply with GDPR ?
No, just say in the Terms, that the target audience isn't the EU.