I initially gave the SWF a pass despite it's connections but with their page on E2EE being so vague that it gets misinterpreted like this and causes a massive hellthread is a sign that they're not up to the task
They NEED to be clear with their goals. Not making the distinction between Privacy and Secrecy on their page about E2EE in AP as well as many other mishaps that have already happened has caused nothing but confusion and outrage
Not to mention, whilst the general idea of their goals are nice and all, they do not represent the wider community, and they ESPECIALLY do not represent what actual Fediverse admins are lacking (as you outlined quite clearly)
So far, quite a failure.