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"
Nobody's talking about censorship. Anybody who wants to see that kind of stuff can still just go to the defederated instance without any problem, and nobody is arguing for that possibility to be taken away.
Also, no, I'm not glossing over that part. Instead, you seem to be glossing over this part of your own quote:
In an age where transphobic legislation is passed left and right at an alarming rate, you can not tell me in good consciousness that transphobia and similar intolerant ideologies are actually successfully being kept in check by public opinion right now, and rational argument does jack shit, as evidenced by, well, the whole of public discourse about the topic apparently not having any bearing on said legislation.