Remember, there’s really only two options: run a service in a country and abide by the law and norms of that country, or don’t run a service in that country (ie IP geoblock the entire place).
I mean, sure, you can run a service that abides by the law but not the norms (eg Onlyfans is available in the US despite the US being a country founded by prudes), but it’s hard and you need your full focus to get it just right. And, worse yet, in China the border between law and norms is notoriously blurred.
I’m for freedom of speech and against Chairman Xi, but I can’t really fault the Midjourney team for choosing to operate in China regardless. It’s a hard choice and there are no right answers.