On light of the Pavek Durov arrest: do you think nostr relays should implement basic moderation on clear (i.e. unencrypted) content? E.g. ban pedo-pornographic content.

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I don't know if I think they should. But I do think many of them will start asking themselves the question. Especially since there is no deniability possible since the TornadoCash story...

By "deniability" you mean the defence that developers are not responsible for the usage of the software they produce?

I think it's a bit different here, since relays are running code, not writing it.

Of course TornadoCash was different, but the idea is that saying "I don't / can't control it" seems not good enough. And with relays, it would be even worse since they actually do control their own servers.