No, it isn't. Jitsi is free to offer a signup and run an LDAP directory of their own. They do not need to federate with FAANG.
If they still wish to do any sort of reporting or eavesdropping on content, something they claim to be specifically impossible, yet somehow they've unearthed, that is their perogative I suppose.
Personally, I think <insert law enforcement authority> of some sort has made rumblings or threats about them daring to run an uneavesdroppable open comms service, so once again, nice things cannot be had, and everyone is happy to torch the ability to low-frictionly connect between arbitrary people because of the CSAM boogeyman, which no evidence has been brought forth to assert the existence of. In fact, there's been no evidence brought forth that there is any sort of worthwhile reason other than "Jitsi wants in on monetizing user's contact meta info".