You're right about that. It's easy to think in terms of broad morals when you're not a target. It's also why I don't buy liberalism even though I'm defending a liberal practice in this specific instance.

I want to say that it's rooted in practicality rather than idealism. I'm uncomfortable with for-profit entities being arbitrators of acceptable content, because various "divisive" or "extreme" viewpoints outside of racism are threatening to their bottom lines as well. A distributed, censorship-proof network would have the side effect of allowing racism to propogate, but it could also protect viewpoints that lie outside of the stifling pro-market center-right consensus that grips most mainstream media platforms. The problem is that these alternatives only attract assholes for the time being.

It's a definite tradeoff where I can't stand behind any one position definitively yet.

It seems reasonable to judge for-profit entities by what they allow on their platform. Certainly this has downsides - the "free the nipple" would agree with your position on this.