alt Hacker NewsVery true. They are effectively a new type of non-territorial state with absolutely no separation of powers or rule of law or principle of proportionality.
What makes this difficult though is that they are under constant attack from highly organised and automated criminal operations that create and exploit accounts en masse.
Any solution to the tyrannical state of affairs we are subjected to (even more so as developers) needs to balance better protections for real people (including as you say for people who have committed some transgressions) with fighting organised crime.
It's also used by the actual territorial state to project power through corporations, by influencing them to project their policies. I'm reminded of the story of the guy that had his google account shut down for "CSAM" because they took explicit medical pictures of their child at the directions of physicians, that were only privately shared solely for the purpose of aiding diagnosis. Apparently google works with the government to create these systems to scan your cloud images in the background.