My personal bias would be to keep everything on a single instance, or at least limit the number of distinct instances (maybe break it up at a coarser grain than per-team). If teams are operating truly independently, then there's no big issue with separating things out, but at the point that you have cross-team dependencies, having a centralized place to represent these dependencies is going to be pretty important
Anecdotally, most Dagster Cloud users tend to keep all of their teams on a single deployment