That’s a good question. Based on my research about the fediverse (the only close approximation to Nostr) whoever manages the servers that host and distribute content are legally liable in a variety of ways. I linked this at the top of my proposal because it’s helpful context:

Electronic Frontier Foundation

User Generated Content and the Fediverse: A Legal Primer

A growing number of people are experimenting with federated alternatives to social media like Mastodon, either by joining an “instance” hosted ...

The western world generally adheres to this regime of who is responsible for the distribution of illegal content. China is far less permissive, so I’m not sure if there’s any point is trying to satisfy their legal demands.

That's a good reason, but if we haven't been able to eliminate this type of content on centralized platforms until today, I believe that on a decentralized protocol we won't be able to. But yeah, I wish my relays didn't feed me that content. But I want transparency, I want to know what content is censored and a way to check.