It probably can’t compete at the moment, but there’s nothing preventing people from adding the features they want on top of Lemmy, whether it be on the server side or client side. Because of federation and ActivityPub, even if you bolt on a bunch of extra features, the basics like seeing and commenting on posts from other servers will still work.

For example, I’m not even on Lemmy.World but I’m still replying to you. And to an even more extreme degree, I was able to view your profile and posts using my Mastodon account and app, since Mastodon also uses ActivityPub, even though it’s designed more like Twitter instead of Reddit.