Sure, there are servers, but the different grouping is the whole point because they're not coupling hosting to apps. When people say "where are Bluesky instances", they're asserting that it's useful to run many copies of the Bluesky database server. My article is an attempt to show that this way of thinking is very Mastodon-brained because these "instances" are the only unit of decentralization that's available in Mastodon. But you don't have to think this way.

In atproto, you can swap hosting (without changing apps), and you can create and use different apps (without changing hosting). That's the thing you can't do in Mastodon because it hard-couples hosting + apps into monolithic "instances".

In Mastodon, "receiver" and "sender" talk to each other, as you say. In atproto, hosting servers never talk to one another. The data from them flows into apps.

You're right that there's often a firehose in the middle, but that's also misleading. There doesn't have to be one firehose — there's a bunch of community-ran ones. It's relatively cheap to run one yourself these days (about $30/mo). It's easy to pool them between apps. And many apps don't use Firehose at all, and instead query community indexes like Constellation (https://constellation.microcosm.blue/). So "one firehose" is misleading.

You're treating Mastodon as the protocol here, and sure it's a combined frontend/backend, and it is the most used one, but its just one implementation of the AP protocol. You can plug your favourite AP app/frontend into any Mastodon instance.