what's the practical advantage of so many small relays?

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Decentralization. Each thing goes to its own place.

What is a thing? What is a place? Do you mean, for example, one relay is for "only for cat pics"? And another relay is "only for discussing politics"? Like each relay is a subreddit or something?

Yep, that is already like that today. With my expected 2B relays out there, it will be very important to find the right relays that have the content you want.

How would that work though?

When I post a picture of a cat, it would go to all my relays, not only the the relay dedicated to cats.

Being a follower of 100 differents would mean being connected to 100 different relays, and blasting 99 of 100 relays with content that they don't want to be hosting, every time I post a note.

So how would fragmenting relays to such extremes be actually practical?