Honestly, reading the second post I feel for them. Seems like the main issues are all technical.
The issue about a mod removing an image from the posting server and it not being removed on other servers is very concerning. That means that any instance needs to moderate the same content again on top of the moderation that was already done by the host instance.
That type of duplication of effort is strange and it also means that illegal images could be propagated throughout the instances when they could have been stopped at the front door.