It's become clear, as some, myself included, have been saying for well over a year, that federation and decentralisation is no silver bullet, and will not by itself prevent abuse. It does in fact facilitate certain types.
This is not a specific failing of Mastodon, however, and has affected other platforms as well. Many aspects of wilw's experience on Mastodon resemble my own on Imzy two years ago.
There's no substitute for effective administration of instances.
User-level blocking tools are not, of and by themselves, sufficient.
Admin tools are insufficient. This is a fairly frequent occurrence, and on virtually every social media platform I've seen, including staff-level access to several, this has been the case.
The early stage of system development is typically about user features. Then performance issues start to hit. Then abuse.
Mastodon have been encountering the performance and abuse problems, and no, they haven't handled the first encounter particularly well. This doesn't mean that the system as a whole has an invalid model. There are numerous people, many with years and decades of online experience, taking part in that conversation.
Throwing in the towel at this point is highly premature.