These are tough calls to make. On the one hand I applaud the step taken to protect the community hosted by this instance, on the other I also find that simply cuting ties and conversation only furthers the divide.
Sure we should not have to defend the validity of our existence, and also realise that most hate leaves little place for heathy discussions. But in avoiding their echo chambers I find we quiet ours too, we renounce our visibility for our comfort and theirs.
I guess I wish there were other ways to warn users about potentially triggering instances rather than outright defederating, but I do understand your main motives.
The ruling was made in the context of a specific law and not as an absolute rulling.
Not saying I agree with it but just adding nuance even if you don’t intend to explore the topic further.