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"
I don't know the lemmygrad situation but I'd likely agree. If they're not spreading violence or CSAM or engaging in abusive activity (doxing, SWATing, targeted harassment, etc) then I think the filtering of communities should be left to the users. Moderation is to ensure that an instance isn't overran by spam or bot postings so that the users can communicate.
I don't need a Big Brother deciding who I can and cannot talk to and which opinions I can and cannot be exposed to.