This becomes a problem though when, like in my case at the moment I'm just me running my own instance. Even if other users join my instance, how many are going to want to moderate the content? Not many I'd bet. There is so much content coming in right now. As of right now I've received 405 new threads, 5652 new comments and information like avatars (which could also be explicit) from 6058 users.
How does one person moderate all of that? I'm not sure (not tested, but I doubt it) whether a moderator deleting a comment or a post on the owning instance is also sent to other instances federating. I think it should (and maybe have it configurable whether you honour them or not, but it should be on by default). That way the moderator team on the hosting instance is removing stuff. Sure on a per instance level reported content can also be deleted. But that should be the outlier.