Yup. They are painting themselves into a corner and they're going to be the one blamed in the end. Not a good move.
Mark should have either said "we will only take down illegal content" or "we're going to do what we want to maintain appropriate content".
The first would be much easier because, with the 2nd, they will be the decision maker on everything and will get dragged into every decision that's political (all of them?).