What happens when one of the domains they did not ban publishes some news content than demands payment from Facebook when they do not have a process in place for that? How do they take the risk?
[1] - https://www.cnet.com/news/facebook-accidentally-blocks-own-p...
All Facebook has managed to achieve is to give the Australian government a good reason to dig in, to increase support for the new media code within Australia, and to gain the Australian government the support of various other governments internationally.
They aren't.
> It's hardly reasonable to accuse facebook of not knowing what they are doing
No, it's reasonable. This has backfired badly for Facebook. They've weakened their bargaining position.