I think you are making broad statements because you don't like facebook, this is fine, but its fails to add anything.
So here's the thing, Facebook has a few big issues they can see:
1) the FB brand is toxic
2) the Facebook app/site is being seen as a ghetto for extremists and arseholes
3) instagram is a fragile cashcow.
4) AR is the next platform, which they have to nail stay in the game, which requires trust.
We all know that facebook proper is full of arseholes. Its profitable for now, but if it continues to be a ghetto for karens and racist kevs (or is seen to be) then people won't advertise. They also know that content moderation is fucking hard.
However, those are the excuses. They have good, clear, well written content guidelines. The issue is, they are not enforced equally. Trump broke the rules, he should have had his pubic hair pulled out. However because he's a politician they don't want to be accused of editorialising content.
This is because The management team are moral cowards. They want to do the right thing, but they are scared of the blowback from politicians. As they have the power to really shit on their parade. Add to this mix, a strong hysterical bunch of activists shouting at them, inside and out.
This causes the management team to withdraw into their shell. They see themselves as an island of reasonableness. the oversight committee is a step to being a useful tool to measure policy change. However it requires trust.
The bottom line is this, being a mirror of society is tough, because society has a whole bunch of toxic noise shitbags. Modelling your self on free expression means allowing these dicks to tarnish you.