I think you don't understand what InstanceRequest means vs. Request.
InstanceRequest means the method will be called on the domain object corresponding to the proxy passed as argument (referenced by its @ProxyFor annotation), so the "instance of the entity" is "this".
Request, on the other hand, means the method will be called on the class referenced by the @Service annotation. Whether there's an instance of the service class or the method is static depends on whether there is a ServiceLocator for the service (similarly to entities that must have a findXxx static method, a no-arg constructor, and a getId and getVersion instance methods, unless there is a Locator for the entity class).