It's a feature, not a bug, at least when they're upfront about it. With non-federated platforms, you're still subject to the domain's lord and master, but you can't pick who that is or maintain access to your communities if you upset them.
While Blahaj isn't the right instance for me, it's no problem that it exists side by side with other instances, and people who want to use social media with no risk of running into things they're already fed up with can have a place for that. If you get banned from somewhere, it's because it wasn't the right fit for you, and nothing's stopping you from finding or making a place that is. It's not like the has to be only one 196, it's just that the one where all the cool people are is the one where everyone agrees to give everyone the benefit of the doubt on all things gender and sexuality.