In general, people on the Fediverse want to be able to make local moderation decisions; the way that extends to other federated sites is by not federating with them. Most Fediverse sites will not federate with sites that have bad or nonexistent moderation (or simply incompatible moderation policies). Bluesky's architecture basically means that it is one big unmoderated site. The normal reaction of Fediverse admins is then to block it.

As a controversy, it's been blown out of proportion. It's just Fediverse admins setting the moderation policies for their own sites, as always.