False dichotomy. We have always punished some speech (e.g. fraud) while sanctifying others (political speech).
If Kiwifarms wants to continue "this degree of free speech" it's up to them to find someone willing to tolerate their bullshit, and then to not step over the line, as they apparently just did with Cloudflare.
Or host themselves. ISPs are common carriers. Their freedom of assembly is abridged in a way others' is not.
Nobody has been legislated to do anything here. Cloudflare is dumping Kiwifarms. There are other hosts. That's one middle ground: a diversity of opinions on what constitutes unacceptable speech. Here's another: the government has no right shutting down Kiwifarms in the absence of a true threat [1], but Cloudflare is free to.
If you look at the history of communication technologies, particularly public ones (e.g. the printing press and television), this pattern recapitulates. An idealistic explosion of creativity. Weaponisation. Scrambling alongside states over-reacting. Then a middle ground.
We don't have anything close to consensus on the Internet, save perhaps for X-rated content. So private actors are figuring things out. We'll probably see a government response carving out protections for both speech and platforms, though hopefully nothing as onerous as what was done with TV [2]. And then over decades an equilibrium will arise. An equilibrium between "de-shrining free speech" and "entrench[ing]hatred."
[1] https://en.wikipedia.org/wiki/True_threat
[2] https://en.wikipedia.org/wiki/Censorship_in_the_United_State...
Most of us never enshrined free speech above all else. It was never controversial that free speech had limits, that sites had the right to moderate content and ban accounts, or that businesses could refuse service to anyone. Prior to 2016, something like this would not have even been newsworthy.
Painting this issue as black and white is just wrong. Both sides have immense ramifications for the world. Accountability for censoring bodies and people on these platforms is not easily solved.