It still looks pretty standard for a social media platform, it covers their bases for legalities. I can see how someone could read that and be concerned, but I’ll bet https://mastodon.social/@dansup would reply if someone asked a question for clarification on mastodon, he’s generally really good about that.
Edit Update: Seems like someone had similar concerns and dansup replied here: https://mstdn.social/@EdanOsborne/113413398742299770
The positions you take lately, and the arguments you make lately are increasingly disappointing.
No one owes .world anything… If those in control make questionable decisions, they are going to be called out regardless of aggressive moderation, it’s all federated, kinda the point.
“Can’t take he heat, get out of the kitchen…” and all that jazz…