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If this is the case, then wouldn't his fitst paragraph be incorrect also? Because if it is "just in time" with quick purging, the main server still has to constantly serve the instance server the content. It would only be beneficial if many instance users are trying to view the exact same content at around the same time (so for the "massive" communities maybe?)
From my understanding you are correct. Each instance is responsible for serving all of the content of the communities created on it. So many small instances with a smaller amount of communities = good, a few huge instances with lots of communities = bad.
The purging of older content is good news I didn’t know that.