Thanks for your comment. I have been following that too. But I do not see it as a problem really.

Nobody needs to take a million users. You can just close new sign ups. (Japan went amok, and the poor sod did not react in time :)

removing content from a private server is not censorship, not even on Facebook. You decides who gets to camp on your property. If you want to make a hentai-loli instance you can do it... preferably not in a puritan country like Australia or Sweden. If other instances does not want to federate with you it is their choice. It can be compared to the Steemit's flagging-system.

I agree that making laws against drawings, no matter what they depict, is treading on thin ice when it comes to freedom of speech, but that does not have anything to do with federated networks.