Good point and I agree with the downsides. Giving admins more granular ways of hiding content sounds healthy.
There’s also the important distinction between admins finding opinions on the other instance “disagreeable” and muting vs. illegal content in the instance server’s jurisdiction and those of the admins. Defederating the whole instance does seem harsh if the problem is within specific communities only and doesn’t deal with illegal content.
Difficult problem!
Although your current role wouldn’t seem very senior at a large organizational, “senior“ is a relative term and at this company it seems like you are the engineer with ownership responsibilities over the end-to-end software development of a production system. So it might still be reasonable to use a senior title if there are other benefits