Custom lobbies don't meet the same need. That's for playing with your friends, or at least, people you vet yourself. Community servers are a sub-community in of themselves: people tend to play on the same servers on a regular basis, allowing you to build rapport, community norms, and have substantially more direct moderation than company-run servers.

Yes, sometimes you run into power-tripping moderators. That comes with the territory of having moderators. But the upsides, of being embedded in a usefully-sized community, and having nearly constant human moderation, not to mention the whole "stop killing games" of it all, far outweigh the need to shop around a bit for a good server.

I think the ideal middle ground is something like Squad's server system: The developers offer a contract to server owners, establishing basic standards that must be met to be a recommended server. Rules forbidding the crazy bigotry that milsims tend to attract, minimum server specs to ensure smooth gameplay, an effective appeals process. If a server meets those requirements, and signs the agreement to keep meeting those standards, they get put on a "recommended" server list (which 90%+ of the playerbase exclusively use). Other servers go on the "custom" server list, which can be modded, or spun up for certain events, or whatever.