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I've seen BlueSky referred to as BS (as in Blue Sky, but you know...), which seems apt.
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Do they legitimately believe that end users will encounter videos of gruesome murders, live streams of school shootings, etc etc etc, and be like “oh, tee hee hee, that’s not what I want to see! I’d better block that!” and go about their business as usual?
No, they can’t possibly be that foolish. They are going to be doing some amount of content moderation. Just not of Nazis, fascists, or far right reactionaries. Which to me means they want that content on there.