If that was their motivation then why not simply offer an opt-in to heavily moderated servers? And a toggle to make it where that's all you see (if you want). This would not only make their job much easier, since presumably relatively few people want this sort of moderation, but would also increase the overall satisfaction of their entire userbase. People who want moderation for whatever reasons, can have it. Those that don't - don't have to.

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A tangential, but related, issue I've observed is that there seem to be an increasing number of measures being carried out in society that, in effect, drive widespread self censorship. Any interesting conversation, regardless of how otherwise sanitary, may be likely to motivate somebody to want to "report" others. See any thread on, for instance, dark matter. An esoteric scientific concept, yet one where emotions run wild.

The only choice, in scenarios where reporting is likely to lead to penalties that are intolerable, is to simply not say anything at all that might cause even a single ripple in the water. And that is, in effect, not especially different than life in all of these unfree societies we were supposed to have learned from. The fact that we now seem to be becoming one of those societies, even if by a more novel path, is becoming increasingly apparent.