The problem is the censors are also prone to being bad actors, flexing their agenda by bending and stretching rules far beyond their intention and turning them into another tool of our tribalism battles. It's used to squash dissent and often not enacted in good faith.
People are called bigots for all sorts of reasons that have nothing to do with bigotry. And it's done intentionally to weild power over wrong-thinkers.
The bad actors are at all levels and of all persuasions
The advantage of Federation is that this is largely solved by the nature of federation. You just join a server with not to much drama and a culture you agree with.
There are a number of problems with the model (including finding such a server). But censors flexing their agenda isn't a real problem in my experience.
People are called bigots for all sorts of reasons that have nothing to do with bigotry. And it's done intentionally to weild power over wrong-thinkers.
The bad actors are at all levels and of all persuasions