Yes, but on which instance? Lemmy.ml is not controversy free and Lemmy.world already hosts like 50% of Lemmy alone. I think the only viable option that everyone could agree on would be another instance, but that would just leave us with 3 communities.
That happens on active but themed instances like Hexbear, the problem is the drive to replicate a "generalist" instance. The fewer "general" instances the better the niches grow.
An entire meme instance with no users attatched to it with multiple specific meme communities
I created dullsters.net just for just one community, it could be more if there were demand for dull content or another dull community wanted to come over, but I don't have any plans to make it some big thing.