When you stop moderating input, that's when someone builds a fuse filesystem on top of it. We had those for discord (dsfs), twitterfs, redditfs, yt-media-storage, etc. It's also when someone starts using it to distribute malware, like websites built on a combination of GitHub and a cdn.
We are talking about a different kind of moderation. People want to filter out incorrect information that in their opinion damages the reputation of Arxiv, eg covid stuff. It's not about dumping binary data.
This is a motte and bailey fallacy. The real question is about moderation with the goal of checking truth and the scientific content. Obviously illegal content and ddos type overloading attacks need to be blocked.
Very different philosophies are clashing here. Arxiv came about in an age of different zeitgeist. We may never get back to that moment.