My thinking is it is a problem of misaligned incentives. Twitter benefits from outrage through engagement. The perpetrators of hatred benefit from outrage through division. You and I, we do not benefit from this alignment.
Something needs to be done policy-wise about Twitter and Facebook, but we should also be telling each other to chill the frak out -- and to consider the truths (and every ideology has some truth to it, that's how it acquires verosimilitude and grows) behind the asshole's worldview. Maybe those damn transphobes are looking at some things that we've become blind to.
It's why they didn't ban Trump for all this time until he was no longer president. I mean sure, as president of the US he would get special treatment, but he didn't use the official twitter account of the US presidency, and he caused a lot of issues. But also a lot of engagement for Twitter; I wouldn't be surprised if all the reactions, retweets and responses to his tweets, and the fact half the world news media would jump on top of anything he tweeted, were responsible for a big chunk of Twitter's usage during that period.