In the wake of #fediblock and #thebadspace controversy, I would like to highlight the existance of the #RemoteNeutrality approach.
Remember #NetNeutrality, ISPs being common carriers and them not meddling with the pages users want to see? This is similar.
Under a "remote neutral" approach each #fediverse instance leaves the tight opinionated moderation policies to their own users users and the content their users generate or share with the aim of running a safe and welcoming instance for their members that's safe to federate with.
However, remote content is only moderated whenever there is a report and only blocked if it's straight out illegal to host / cache or constitute unsolicited spam/harassment. Otherwise objectionable remote content is limited at most and users can block it if they want.
I can't stress enough the benefits this has:
1. It makes moderation feasible for small instances
2. It does not fracture the fediverse unnecessarily