Plebbit only hosts text. Images from google and other sites can be linked/embedded in posts. This fixes the issue of hosting any nefarious content.
Somewhere, a black hat master of ASCII art is cracking his hands.
It's still misleading though, it takes away control from instance controllers, which in today's world, also makes it so that it is easier to swamp it with bot accounts, misinformation, and even be an unwilling decentralization participant. Looking behind the curtains, it's basically built by and around NFT (even the user avatars have to be NFT for no good reason), and already has a market for it, so don't be surprised if there is a blockchain rugpull behind this. And it also doesn't fix the inherent problem, rather, because of its design, it makes communities all the more authoritarian because whoever controls the NFT controls the moderation.
If you use it, you will no longer have the recourse of admins when its the moderators messing up and acting in bad faith. That problem isn't due to instances, it's due to the more generalized problem of people in position of authorities more interested in representing themselves than a community or their obligations, this does nothing to, say, provide for alternative moderation groups if you are unhappy with how the current one is moderating it. It does protect your account to some degree, but it also protect the accounts of the terrorists running around spreading hate speech, and you will feed a small part of it due to its decentralized nature.
Personally, the whole platform, https://plebbit.com/introduction , just seems a monetization strategy to monetize reddit-like communities into the NFT market. Expect the inevitable drama and subsequent crashes. But also, don't expect it, it will depend wholly on the NFT holder, which means the community will go to sh-t if it gets lost or the administrative moderators of that community become out of reach, presumably because they sold it for millions to the nearest troll farm while they went off to the Bahamas. But hey, maybe it will pull the dumb and those just interested in monetization into their eco-system.