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I think he states that due to certain cultures ban things when it makes them "feel" different than the normal social structures. By putting nsfw that is signaling to not go there, but I don't think it should be banned if you are inclined to view that type of material.

steem is censorship resistant......obviously, illegal content like child porn, copyrighted images, and stealing artist identities will be flagged to oblivion

Yes, and that content should be, but then it comes down to the grey areas, where you may not like it, or I may not like it, but in another country, it is a social norm.