Ah, I remember seeing this float across my blog from somebody I follow.
It seems like it could be an alright idea if executed properly, but based on how they want the site to be a "safe space" for everyone in it, I feel like it's something aimed at children. Like how parents put their kids on those heavily censored and monitored kiddie sites to let them mess about in mild entertainment until they get bored and find something of more interest to do.
Except instead of children it's aimed at child-minded think-skinned morons who screech at anything even remotely unpleasant to them.
Banning hate blogs, again, sounds good in concept, but figuring out what constitutes as actual hate and not just an opinion would break that system in a heart-beat. Everyone takes such high offense to things over the internet that an opposing opinion could be seen as hate. I think that system would be abused into the floor by easily-triggered SJWs who cry about every little insignificant issue in their lives.
It'll flop. Either before it even gets off the ground, or it's gonna crash and burn after being open for a while, be it from system abuse, raids, spergs, or people getting butthurt about not being able to personalize their virtual hugbox exactly to their liking and stomping off to abandon it like a spoiled brat.
The lack of professionalism from whomever is answering asks is also quite the red flag. This really can't end well.