And the statement that it wasn't encrypted, just compressed, is an entirely antagonistic reframing.
There were multiple block lists. Some right in the open, and one that was stored as a monolithic .dat (I assume the one he called "compressed").
The end result is that the second list was obfuscated from not only end-users, but also "admins" hosting it, and developers attempting to work on the project.
The compression decision only holds if all of the filter lists were compressed and this decision was clearly documented.
Plus the circumstantial evidence that the "enable toxic mode" option did not in fact disable the filtering that relied on the .dat file.
I can't even say that I'm in theory against his openly stated goals of making the fediverse more approachable to normies. But this is not the way to implement it, and it's not the way to react when called out about it.