Your user experience will be pretty poor if you either get banned from the server you're using or your self-hosted server gets defederated by the large ones.

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The same thing will happen to nostr one day too. As if now, the fediverse side has the tech to manage their servers to fight spam while nostr is the wild wild west and just accepts spammers and pushes the responsibility to the clients while the relays are helpless against it.

This is a loosing battle.

Nostr has to find a middle-ground to give admins the tools they need to protect their servers

Sure. We just have to be careful that it doesn't become censorship.

That will happen with more of the Twitter and Mastodon crowd as they migrate here. They want safe speech. There is nothing stopping that. They want more than the best tool avaliable, the handy dandy mute button. Just wait for the trannies to come here lol, thats when it starts. I seen some discussion already with newbies about sjaring block lists.

We might as well have the admin tools to protect and manage our instances now because this free-4-all wont scale well in the near future and will be too costly to maintain.

I agree with your first paragraph, but as to your second point, I think that we need better education of new users, rather than giving them what they want now.