It's quite simple.
Each person is an individual, with their own sets of values.
Piefed is only one, if those rules federate (I'm not sure about this) in all piefed there only "one" community.
If you are inline with that community you'll be very happy with the "community" moderation.
If you are not inline you will not be happy.
Only happy people who is inline with community moderation will stay, because, why stay in a place that you don't read people you like and other people cannot read you. So then there's the echo chamber.
If for you the echo chamber is a feature, as it seems, then just admit it. I think we are down to the fact that "echo-chamber" is a name with bad connotations, and thus the pushback. We can give it another name "hideous-free chamber".
But at the end is a space where you are only going to communicate with people that agree with you. If you like that space then go to that space, it seems that you think that's positive "not having to be blocking all the time and letting the system block for you". If you are inline with that system then, as I said, you'll be happy there.
But don't sell it as what it's not. It's not a place where diverse opinions could exist, by definition. Only the majoritarian opinion could exist there, by design.
I get an issue, because it seems like you are saying that in piefed each person can moderate then there's "more different moderators", or something like that. But it's not, as all moderation, votes, are pack together and there's only ONE moderation, the moderation of the majority.
At the end, time will tell. Piefed do exist, and it's rolling. It's just a matter of giving it time and seeing if the place is more diverse than lemmy or not. Lemmy it's quite diverse, it's a hard objective, most people here don't even agree with Lemmy devs, and there are distinct groups in distinct instances with very diverse values (in fact I get the feeling that piefed was mostly created to separate themselves from one of those groups), let's see of in a couple of years there's such diversity in piefed. I don't know how it's going to be possible, as people who would have diverse opinions would be affected by the automatic moderation feature and will promptly leave the space, but let's see.