The instance seems to be mostly right wing trolls. I know defederating is unpopular but I don't think much is to be lost in this case and it can save the mods some headaches.
Edit: the response on exploding-heads.com to my reporting of transphobia. Courtesy of the "second in command"
The difference here is that there's no financial gain to platforming. If they're actually causing problems, then the response can be swift and easy because there's no ad dollars to worry about.
Again, I don't disagree with this on principle, and if TheDude wants to defederate them I would support it. I just don't see it as ridiculously urgent or dire.