A lot of people got mad for being blocked, but honestly I can't blame the admins for trying to reduce the amount of moderation necessary. There are thousands of people per moderator on those sites and that combined with open registration is a recipe for toxic bullshit nobody wants to deal with.
Smaller instances don't get blocked, though. I doubt they will be until the low quality shitposters will figure out a way to host a server of their own, but without a central gathering place I think even then the abuse will be easily prevented.
That said, Lemmy used to be set to whitelist-only by default for ages. This has been changed, but if someone wants to federate with just their servers of choice, they can just toggle a setting.
Lemmy also comes with an approval form by default, which is used manually to vet users during signup. Open signup servers disable that field, obviously, but those servers are often also the ones that get blocked.
I can see this evolving to a situation where only closed or manually approved servers get federated by default. Requiring manual reduces the probability that a small team of admins will get overwhelmed by a large influx of users.
Email is also old and unextendable, whereas the Fediverse has interoperable stacks built on top of it, opening the door to better moderation and web-of-trust tools that help combat spam and decrease the pressure for centralization.
Servers defederating because of viagra/nigerian prince/etc. spam is one thing. A "lefty politics" server defederating with a "righty politics" server or vice-versa because they just want an echo chamber? Sure, you do you. General-purpose defederating other general-purpose servers because of "misinformation" and "trolling", when those terms basically mean "disagreeing with the current mainstream narrative on any controversial issue"? That's absurd. The generally-accepted issue with social media was for years that it created echo chambers. Now people are trying to use mastodon to create even more powerful echo chambers.
What's the definition of too low? Up to the admins of that server.
If one seeks out something that explicitly isn't an echo chamber, I'm sure there are many places for that. I'm just not seeing that as, really, at all desirable for a lot of people.
With federated solutions, users have a choice.
Twitter is fairly lightly moderated I think, and the "following" tab gives a raw timeline.
If federated services pick up steam, they will pick between a few popular options.