An IP address is a physical location. This is true for where packets come from, like a VPN. And it's true for hosting sites, like a Tor Onion. Tor hides this. It hides where the guy comes from, and it hides server locations where hosted with an onion.
Arweave is a new way to do the internet, a parallel society where physical locations are less relevant, because all content is everywhere. Things aren't addressed as going to an IP or hosted on an IP, but instead by the content.
The purpose of this is similar to Nostr. It can do nearly any type of activity the internet can do. And as far as threat model, it's not designed for drugs/illegal the same way Tor is. In this case, advocating for using for videos, blogs, podcasts.