The instance seems to be mostly right wing trolls. I know defederating is unpopular but I don't think much is to be lost in this case and it can save the mods some headaches.
Edit: the response on exploding-heads.com to my reporting of transphobia. Courtesy of the "second in command"
Then by being a part of the instance that is causing problems they are supporting and enabling the problems. They can continue to participate in the conversations that they wish to participate in by joining the instances they are interested in in good faith.
I'm also from kbin.social, but the whole point of the federation, as you JUST pointed out, is to participate in conversations across instances and provide input in good faith to create multiple perspectives. Additionally, just because THIS post is about sh.itjust.works doesn't mean it won't have an outcome for kbin.social or other instances as well.