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...
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.