I don't think that it's bad at all, not in comparison to pretty much every other forum.
With that said the mods should be less literal about the rule applications imo.

Like you can say bigoted shit as much as you want but it doesn't seem like you'll get in trouble for it, but then if you snap even once even if it's directed at the person being bigoted and you insult them directly you get in trouble.
It's like a super robotic way of moderating and not very nuanced.