In practice, Bluesky is a fully centralized system. You can run your own server to feed posts into the single centralized system.
The API is open and free too, making it much easier to build on the network. The system is designed so that we can design new record types and create all sorts of applications on ATProto. It's going to go well beyond just a Twitter clone and each app shares the same social fabric, instead of having to attract their own, which is going to accelerate the network effect
Is it perfectly federated, no, there are weak points that will be made less weak with time. It's not a reason to put it down
From what I can tell, most content moderation on bluesky is done via labelers, which you need a pds to run, but not to use.
Both X and bluesky have semi-automated moderation processes with an inherent false positive rate. The two high profile cases I'm aware of (Jessie Singal and Laura Loomer) that were suspended automatically eventually got turned back on once a human was involved.
https://bsky.app/profile/jessesingal.com
https://bsky.app/profile/loomered.bsky.social/post/3lemtdvls...