This is the exact nature of decentralised networks though. It's a tacit agreement of "you follow my rules when you're commenting on my instance and I follow your rules when I comment on your instance". It's a shared attempt at civility, and if that breaks down, defederation is only a few clicks away. We've never had direct control over other instances, so we've defederated them when that civility has broken down, and other instances have the exact same right to do the same with us. The Blahaj admins are paying hundreds of dollars, usually out of their own pocket, per month to run the instance. I think they get to dictate what goes on in the spaces they run. It's not like other spaces, like lemmy.world, don't have their own unpopular rules, like their heavy-handedness with "advocating violence".
The reason PJ gets called a bigot, is because he dramatically said in that original Blahaj meta thread that he was leaving the instance for good, but then has spent the last 6-9 months going around to every space he can, dragging the Blahaj admins through the mud and loudly proclaiming "dragons aren't real" like it's some self-evident revelation that proves how smart he is. Drag wasn't even a fucking dragon, they were a dragon fucker! It was literally drag's username for fluffs sake. It's not Blahaj's fault that other instance admins have gotten sick of his whiny, self-aggrandising bullcrap. Drag was literally banned from Blahaj not long after that thread, trans people just don't believe respecting pronouns are a cookie you get for being one of the good ones... ¯\_(ツ)_/¯