I personally think this is the wrong descision. The increased users are basically all coming because of the reddit protest and I think most malicious activity will cease when then the influx of reddit refugees dies down. I dont know about sh.itjust.works, but lemmy.world is well moderated, they are just as much struggling with new users as beehaw is, the only difference is that their moderation happens mostly at the community level. There are a lot of good communities on these servers that are worth keeping around. In my opinion we should be a little more patient with them and at least wait a bit until the reddit chaos dies down, because this situation is largely temporary, but our (temporary) defederation will have permanent chilling effects on all of lemmy.
The funny combination would be to combine the single party authoritarian structure with a completly unregulated economy for maximum carnage :P
As far as I underatand the quote, hes talking about needing a socialist system where the rights of individuals are respected and protected, but factories, housing etc is owned and and managed by the commons.