Edit: I wasn't aware of the full situation when I wrote this post, so take it with a grain of salt. Holy shit.
I really appreciate the statement. I don't agree with the action and think they are stupid and dangerous for the Threadiverse, as a frontend shouldn't decide what the user sees, the instance administration is the one to decide. If an instance want to go beehaw, to build a peaceful place and attract Normie's, that is great. But it's not for a frontend developer to decide. If the block list and block policy would have been communicated very prominent for everybody to check out, fine. But this is just stupid.
And by the way, I wholeheartedly agree with a lot of OPs opinions. The Threadiverse is toxic on many occasions. Instances like Lemmy.ml and dbzero are problematic and probably partly responsible for the Threadiverse not to grow. But again, it's the instance administration who should decide what the user to see. It is just not understandable for the user to have multiple levels of administrators.