So let me start off by saying that I recognize that there was initially a genuine problem with people who didn't want NSFW content being exposed to it.
Some of this was due to the fact that not all content was being correctly flagged as NSFW, and some of it was because a lot of users didn't realize that individual users can choose to completely block an entire instance - which is not only a very easy and fast solution, but also does not require an all-or-nothing approach of defederating from NSFW instances.
A number of changes were made, but some of those lingering changes have meant that people who do want to see NSFW content are not because:
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Even having subscribed to several NSFW subs, they are effectively completely missing from my feed.
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Most NSFW thumbnails are blurred.
Both of these behaviors should not be occurring if a user has chosen in their settings to NOT hide NSFW content.
However, I will also say that the blurred state is something that deserves its own user setting (i.e. so that a user can choose to NOT hide NSFW, but still want them blurred or not) - preferably with the granularity to set it for various sub-types of NSFW (e.g. porn, gore, etc...).
I downvoted you because I think your argument is off the mark, not because I'm an "individual choice" or "I can do what I want" nutjob. I believe is strong moderation.
Allowing a setting to not blur photos will not destory communities. It seems like most people in this thread who would like a setting for this agree that blurring NSFW photos should be the default because that is what is best for the community. Asking for a setting to suit their own tastes is perfectly reasonable. Even within a community, people can have individual needs or tastes and they should be accommodated when reasonable.
They're not asking that all NSFW photos be shown for everybody. They're asking that they be allowed to customize their own experience without affecting anybody else. Telling them to fuck off is pretty exclusive and non-community oriented behavior.