I don't think discoverability would be dead even if there were no other Matrix servers.
Rooms/spaces can be announced and found in other places. I generally find them through various projects' own web sites, just as I do forums, email lists, IRC channels, etc. They could also be catalogued separately, much as is done for Lemmy, which has terrible built-in discovery.
So the record label thinks it should have the power to cut off people's internet service, upon which most people depend for at least some basic essentials of living, by simply accusing them of copyright infringement.
I hope the record label is severely punished for this abuse of the (publicly funded) justice system.