Baraag is way more permissive than misskey.io and it gained a pretty bad reputation in the past because of that, plus it essentially advertises itself as a safe haven for lolicon art and primarily focuses on that, so that’s why it’s on many block lists.
misskey.io is just a generalist Japanese instance (which is why many Japanese artists easily hop on it). It’s also the biggest misskey instance and is run by the main developer, so it’s usually not blocked by default because most people use it.
Defederating from misskey.io would be like defederating from mastodon.social. Some will do it but it’s not the default stance afaik.
You actually tricked yourself into believing this isn’t all about shutting down competition to American companies or stopping people’s (especially young people’s) power to disseminate even remotely left leaning views that could gain traction and threaten the oligarchs.
I mean even the politicians who back this bill state as much, so I’m not sure why you think this is about national defense. American citizens are just under as much threat as before, but now they have one less way to express themselves. Ain’t that great. /s