That is a fair point, but what happens when the moderation team deviates from your beliefs? What happens if your instance is declared not-safe? You're effectively exiled from the fediverse, people you follow will never see your toots again.
Then I move instance (probably well before my instance is declared not safe, tbh). It's a feature in Mastodon, assuming my moderation team hasn't decided to disable it - basically, I send a protocol message to my followers saying "I'm over here" and they automatically follow me over there. In a future p2p protocol that's designed by people who actually realise that people exist who don't want everyone on the internet to have a direct line to their inbox (aka none of the current ones), I could simply move moderation team and keep my identity.
It's incredibly unlikely that tomorrow, my instance pushes the needle so far that everyone blocks it immediately. More likely a series of changes in the moderation team gradually pushes things that way and I can change instance before things get bad enough that anyone would block it - and I'd do that because it wouldn't be a community I want to be part of any more, rather than any particular fear about being blocked.
I had no idea account migration landed. Your description actually sounds quite reasonable. I guess I was too shocked and burnt by the instance blocking incident. Maybe I should give Mastodon another try.
Just need to find an instance that doesn't block...
Finding an instance that doesn't block other instances, but also actually moderates its users and thus doesn't get blocked, is going to be pretty hard - and also a rather harassment-filled experience unless you fit in with the Gab crowd, I imagine. You could always run your own instance.
Note that the majority of instances that are "blocked" are actually soft-blocked by most instances, meaning you can still talk to people on them if you follow them, you're just not going to find posts from their users otherwise.