Valve deciding which games they host on their own platform? Isn't that what they're supposed to do?
Right, they never stated otherwise, but transphobic measures doesn't necessarily make one a nazi. It makes you awful but there are different kinds of awful than just nazism. The risk of calling everyone a nazi is that you dilute what the word actually means so that you risk generalizing and uniting the awful people instead of separating them based on their various horrendous opinions.
The moderation activity has increased exponentially the last few weeks, what do you mean specifically?
Except isn't the truth that they experienced harassment from other open-registration instances and in lack of better moderation tools chose to defederate for the time being?
What other option is there? If you can't convince them yourself, it's not like the internet has some magic bullet for making them switch to another app.
You know what you can do if you want to see that content? Subscribe to that instance or an instance that is federated with it. Easy