I would argue that federating with either of the biggest companies
What other company are you referring to?
because both Threads and Meta are simply too large to be moderated correctly
They're not. Meta is simply not motivated to implement proper moderation.
That being said, I acknowledge and agree that moderation is poor, which is, once again, why you should federate. To let people know they don't need Meta. To show them how to escape the exploitation and harassment.
The Fediverse will likely not be much different in terms of moderation, should it ever become even a fraction of the size.