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That seems like instance admins are too powerful. This is just a guess, but each community probably has a home instance. That instance's admin could then ban the community or ban people from joining / interacting with that community, even if they're on another instance.
Likely the issue comes from everyone (users and communities) piling onto lemmy.ml.
That said, it has been a frequent complaint that #Fediverse admins have too much power. Networks like #Nostr attempt to remove or dilute such power.