Exactly ... and its good Meta is showing their hand early rather than later ... the more unfederated they act, the more likely they'll leave the fediverse ecosystem.
I think this probably is illegal in the US too. Whether anything will be done about it is probably a question of money, though. So, since the infringed party here is not wealthy, nothing is likely to come of it.
No no, we're all misunderstanding what they mean by "free speech." It's not free as in "freedom", but free as in air: you don't directly pay them money to use their platform, much like you don't yet have to directly pay our corporate overloads for the privilege of breathing oxygen.
It has basically the same limitations that lemmy-mastodon has. Pixelfed users can follow lemmy communities to see posts in their timelines. They can see top level comments as replies and can also reply to create top level comments. Lemmy users can't follow pixelfed accounts in any way.