it becomes a form of censorship when snall websites and forums shut down because they don’t have the capacity to comply.

In this scenario that’s not a consideration.

We’re talking about algorithmically-driven content, which wouldn’t apply to Lemmy, Mastodon, or many mom-and-pop sized pages and forums. Those have human moderation anyway, which the big sites don’t. If you’re making editorial decisions by weighting algorithmically-driven content, it’s not censorship to hold you accountable for the consequences of your editorial decisions. (Just as we would any major media outlet.)