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One City that doesn’t get mentioned much here is Tübingen(~70k) in the south. Its pretty much as liberal as Berlin, probably the most accepting city under 500k population in Germany. It is ridiculously beautiful with a huge old town, and as someone who is queer and spends time there often, it feels very safe. The queer community is huge because there is tons of students. It has amazing City Planning / Cycling Infrastructure / Public Transport, and the surrounding nature is beautiful as well.

I think this is the ideal solution, but you should be able to share the groups you create with others, exactly like multireddits. That way, collections of these groups could be made available to others, for them to add to their feed.

But is it really a Problem exclusive to the fediverse? there is several large news communities on reddit as well, and you have to pick or see duplicates. Also, this is only an issue in heavily aggregation-focused communities, not in those where content is generated (memes, hobby communities) as those do not have the issue of duplicates so you can just sub to all the ones you are interested in, even if several of them have the same subject.

Its also pretty easy to get it setup to a semi-customized basic look and feel. Use one of the bigger themes, a popular Icon pack and a nice matching wallpaper as well as a little task bar customization and some widgets and youre set, and all this takes less than two hours.