Excatly why I never opened my instance. With it just being me, i can control what is on it and what is synced. There was too much risk with CP/CSAM type stuff. Heck I didnt even want to risk my linode account (aka they shut my other VPS systems down) due to TOS from shenanigans.
That said, I can still contribute just fine with my own instance and dont have to be involved in these drama defederation actions.
I would encourage anyone that is willing to criticize an instance maintainer for their decisions on risk to just roll out the lemmy-ansible setup and go your own way. If you troll or act in bad faith, you will get defederated. If you act like a reasonable person, no one will even notice. And that way you are in control of uptime, patch cadence, backups etc.