Legal authorities operating in the host country will not be thrilled if you have an instance filled with csam, and all sane users will also want to be heavily distanced from it. The latter applies to any content widely deemed objectionable, not just to illegal material - which makes the motive for moderation pretty reasonable IMO. If the moderation for a instance doesn’t suit the users, users and communities are free to move to an instance that better suits them, and this does happen. It’s a strength of the fediverse.
Legal authorities operating in the host country will not be thrilled if you have an instance filled with csam, and all sane users will also want to be heavily distanced from it. The latter applies to any content widely deemed objectionable, not just to illegal material - which makes the motive for moderation pretty reasonable IMO. If the moderation for a instance doesn’t suit the users, users and communities are free to move to an instance that better suits them, and this does happen. It’s a strength of the fediverse.