>good point, but from a tactical perspective, not moderating might have made sense, to force lawmakers' hands in passing stronger laws about spam, harrassment, propaganda, etc.

Why would companies find that preferable to moderating themselves? If the government makes laws prohibiting that stuff, then that means the companies could get in trouble if they let any of that through. If companies self-moderate, then there will be less pressure for laws like that to exist, and the companies won't get hit with penalties for missing a few things here and there.