But then what is a relay? See if a relay doesn't hold an account and cannot ban/moderate directly content they serve then what's exactly happening?
I also wonder if it's a bit of a legal minefield. See I'm running mbin here. I get content from many other mbin/kbin/lemmy instances. Usually they have pretty good moderation and content is removed on my instance too. But, if someone raises a legal complaint with me directly, I'm required to act on that and moderate on my own instance. Which I can do. It seems like you're suggesting that's not directly possible with nostr? So if the main instance chooses to allow it, then it's tough luck for me, I am required to host it?