I dunno, I can just imagine new age of cyber-bullying when a bunch of kids just mass-reports some poor kid (hell, even provoke them on chat so if detached moderator sees that they think it's legit) and sends their account to shadow realm.

Having a closed set of realms servers can opt in with more stringent moderation might be a good idea, but forcing it globally is just entirely stupid; there are things inappropriate for kids that are just fine for teenager audience, and adults play the game too.

If I was in your spot I'd honestly either set up, or rent them a private minecraft server, then they can invite their friends there and you have full control on what is happening with it.

> Correct me if I'm wrong, I don't see anything in their process that suggests that a group of adults playing with their friends are at risk of having their chat audited in the absence of a complaint?

Just need one person taking a piss. And it pretty much means no server with strangers is safe as you could be reported by anyone for anything completely benign in context of the server