Well, I can agree with many points you made. I also think that FG is overreacting.
The only thing I want to say is that Fediverse by design lets administrators choose which instances they connect to. It's rather unfair because there's virtually no free alternative choice to fediverse, but as we choose fediverse, disconnection is a thing. The only question is whether FG is going too far this time. And if it is, we either convince FG to retreat or build an alternative to FG.