I had the same opinion. It's absolutely moderation that reduces the amount of acceptable opinion and behavior. I can't even have good faith discussions on controversial topics on multiple platforms because I am vaguely aware of what is considered the 'right' opinion.

A truly liberal mindset and healthy community would allow controversial opinions, but classic liberalism is demonized now in favor of absolutist values for conduct and morality.

So here's what happens. When a person says a controversial thing and they're banned, silenced, or shadow banned it reduces the amount of incidence for the offending opinion in that community, people who see the ban with the same opinion that want to participate in the community are left with choosing silence ( giving the impression that opinion was not common ) or additionally defending the person actioned against, which then also risks their removal from that community.

It's really that simple. Moderation in my opinion should only go after the real problematic illegal stuff, but we shouldn't be moderating out the actual good faith opinions that people have.