Yeah that is a lovely PR piece, and i watched nextdoor implement that "fix" wired was very generous with the breaking sacred design rule headline, the site wasn't exactly web 3.0 from the beginning and i think that was the point.
It's primary audience appears to be "homeowners" (owners from 1-50 years they do not seem to care) who might want to sell their home or are interested in service for their home.
So two years later and I personally still see the almost identical "those people" posts across all of San Francisco. A valiant effort but without serious moderation it is meaningless.
At a certain point mods in the nextdoor community need to either ban people completely which would cuts away at their fantasy ethos or shadow ban people which basically is the same result.