> wouldn't every website allow everything Legal and be able to just point at the laws and say, "if you don't like it, change the law"?
Again and again, industries operated by rational agents self-regulate with the goal of preventing the government from getting involved. (With many obvious exceptions, like businesses seeking regulatory capture, producers of commodities with razor thin margins, operators who don't expect to be in business long enough for regulation to take effect, etc.)
Once you get the government involved, you have not only the risk of public backlash whenever you make a mistake, you have the risk of fines or worse. Now your legal council has to get involved in the operation of your moderation system. You potentially need multiple people to sign off on moderation decisions to ensure compliance as well as a system to maintain a paper trail in case government auditors come sniffing around. Your operational costs begin to balloon.
A PR person who says, "If you don't like our behavior, change the law" is basically self-destructive.