I don't see how it would hurt nostr

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Yeah. Replace the word "relay" with "webserver" and then think about it again.

It’ll give nostr a really bad reputation, which is inevitable tbh. An open platform hosting all content will bring illegal content.

Future news headline: “Alt-right social media platform refuses to delete child porn”

Again. This is bound to happen and there’s nothing we can do about it. They can’t hurt nostr, only its reputation.

Relays are not open platforms hosting all content though. That's my point. It will give the relay a bad rep. Not nostr.

Yes but we are the only ones who understand this. You’re assuming that they will be rational.