Incorrect. I’m fine with instances that host a variety of content. Including stuff I don’t want to see.
However, I’m allowed to join an instance whose admins take a stance against bigotry for example, and therefore take better care that such content isn’t allowed to freely go through their instance. That way I and a thousand of other users don’t need to all block the content they don’t like manually. It’s my instance admin’s choice, and my choice to go with their instance.