is this good or bad for Twetch and Bitcoin-based social med…

Short term twetch won't have to worry about this imo. Pretty vague wording directed mainly at the large conglomerates

yes I don't think twetch has to worry about being subject to this,

but they could have to worry that if twitter cannot censor any longer, people will have less incentive to move to twetch?

Good point! Assuming twitter complies of course. The government vs. big tech tug of war definitely isn't over yet 😅

yes I think they are just going to find new ways to silence people without outright banning them, shadowbanning is going to skyrocket

I don't think any government law nor action can really force people to act honestly when they are in a system that incentivizes dishonesty.

So Twitter & co are just going to better hide their censorship practices, shadowbanning instead of banning etc.

the incentive of Twetch is that everything is verifiable and @852 needs to continue to build on that to win over Twitter or any other competitor. It is a one way street with no deviations. Every interaction traced onchain, a Twetch enforced protocol.