I've long said that Twitter's character limit is way too small, and I've also long seen that Fediverse and Mastodon are fine with instances having very high limits. (My current instance has over 16 times Musk's new limit, for example. We also have Markdown for text formatting)
*That being said*, Twitter is not Fediverse, where there's a history of posts of all different sizes going around. People are used to the small character limit, and are averse to anything that would change it. Going from 280 to 4000 in one go — rather than an incremental approach or even collapsing longer texts by default *à la* Octodon Social --- is going to be a culture shock to existing users.
Plus, I'm pretty sure Musk isn't going to implement Markdown anytime soon. I'm not even sure he knows what Markdown is! Why waste $8/month for 4000 characters on a desperate billionaire's dying platform when you can sign up to Qoto (or if you don't like that for some reason, a Pleroma, Misskey, or Akkoma instance) and get more characters *and* versatile text formatting for free?
https://mashable.com/article/twitter-character-limit-4000-elon-musk