@ThePlant "widely reported"? I'd ask "by who" but it doesn't even really matter.
If the shitty instances existing actually affected regular people it might make sense to complain about it, but it doesn't really. They're off in their own little bubble, presumably instance blocked by the normal servers they come in contact with and blissfully oblivious to the rest (because of the way federation works, you don't automatically connect to every server in the world).
So like. Yeah it's a thing, but it's not really a particularly /relevant/ thing. The nasty side of fedi exists, we don't go there, more at 11.
@ThePlant There's a bunch of Nazis and transphobes too! But you never see them because all the normal servers that run into them tend to block them on sight.
Decentralization is pretty neat.