Yeah, I don't know why they make drama out of this, it was just a desicion, dumb, unnecessary, coward or whatever you want to but they're in their right at the end of the day
I see a lot of people taking issue with how it was handled. An obvious troll controlling sock puppets apparently spurred this, sure.
But the mods of Lemmy World went on a reddit-like spiteful ban spree, apparently forgetting that we can all see their modlogs or simply not caring about it. People got up in arms over the very childish and assholish behavior of the Lemmy World mods, and folks were eventually unbanned in some cases, but still banned from the main communities as punishment. For example, people saying they would just leave and federate their own instance got banned with mod messages telling them "let us help you with that".
Unfortunately most mods become mods because they desire the power to do things like this. They don't want to help foster and grow a community, they just want the power to ban people they don't like at will.
That's all well and good in theory, but in practice it isn't as easy.
Communities here will naturally centralize to the biggest ones. If all of a sudden an admin of the instance that a certain massive community is on goes bananas and starts de-federating from all sorts of instances and makes stupid decisions, just saying "hurr durr just go and make your own instance and community" isn't helpful because 99% of the people there won't just pick up and start again on a different instance.
The decentralized nature was supposed to solve the problems with centralization, but really all it does is make the same centralization problems happen more often.