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Why is defederation an option when Limit/Mute exist?
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How has the user lost any power? The user is always absolutely free to move to another instance. Hell, the user is absolutely free to run their own instance.
A better question would be what power does he have left? Either he's dependent on instance administrators to be able to interact, or merely follow other users, or he's dependent on instance administrators to not get blocked before the fun even starts. It's inherently undemocratic.
He has the power to create his own instance with his own rules; he has the power to leave for an instance run by like-minded people.
And other people have the power to block that instance should it poison their internet experience. :)
I told you what power the user has. Is it not undemocratic to expect instance admins to associate with people or instances that they find repugnant? Seriously, start your own instance. The barrier to entry is lower than you might think, but you may gain some appreciation for the people who run public instances for free.