Back then someone could have created an offensive blog and it wouldn’t have been taken down. But people would have to link to it, seek it out. Now we have social media sites algorithmically pushing content in our faces, IMO it’s only fair that they’re asked to consider what they’re pushing when they do it.
The issue I've seen is that tends to make it hard to sneak ads into the feed without it being really obvious to everyone what is being done.
It has always existed.
Adding "offensive" widens the scope enormously and unfairly and suddenly we're into the realms of restricting the freedom of speech for normal everyday situations.
There are some generally accepted "yes" and "no's", and then, yes, there's a few things at the edge that might give me cause to think twice.
If defining that line is "extremely fuzzy" to you, then you're already way too far down the rabbit hole (in my opinion) and I won't be following you down there.