Crowdsourced blocklists don't work. Never have, never will. It's far too easy to manipulate.
Especially when people also add "guilty by association". Follow a person that someone doesn't like? Have fun on the blocklist and not having a chance to get off of there
I just moved servers because I found out that the admin of my previous server had an enormous list of servers blocked with these block lists.
They're a stupid idea. Sure, block servers that are hosting illegal or extremist content, but do it one-by-one so you know exactly what it is you're blocking. Otherwise, leave me to make the choice about whether I hide a server or not.
No, that's not actually reasonable given how federation works. You're not viewing content on other instance, you're viewing content imported from other instances. Copies hosted locally. This puts admins in the position of actively hosting content they may find objectionable if it's allowable on other sites and they're federating with those sites.
Your instance is not some neutral community browser for remote communities. It's not the equivalent of Chrome or Firefox. It's the equivalent of a website hosting guest authors, and the website admins are responsible on some level for what they choose to host.
If you want wide open freedom of choice, you have the ability to host your own instance. That's how you get carte blanch to decide what you see and what you don't.