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Low-moderation platforms tend to have...issues.

They attract trolls and extremists, the regular people don't like sharing space with trolls and extremists, so they leave. Rinse and repeat for a while, and soon all the normal people are gone.

If Facebook permitted everything, they'd just be committing business suicide.

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And yet the popular social media sites have far more moderation than classical platforms, which are not regarded as causing problem. You mean low-moderation platforms tend to have objectionable content. True, but I don't see the problem.

Which are the classical platforms? I'm not sure we've had any instances of wide reach distribution systems that completely lacks editorial oversight before internet companies figures out how to monetise raw traffic.

Part of it is popularity/reach. People find objectionable content more objectionable when it's more visible.

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