

NixOS accepted a military company and Pentagon contractor as sponsor and only dropped it after backlash. Ever since then the trust in Nix governance is damaged, even with them trying to regain trust.
(There also are other problems it appears like a distro maintainer pushing new & superfluous core tools without any discussion about it, but this seems to be the biggest one)
Your argument only works if you assume that this sets some precedence for fascists to use. It doesn’t, fascists like Trump will implement fake news laws anyway. In fact Holocaust denial is illegal in quite a lot of countries for quite a while now, most of them democracies (in number, not necessarily km²). Obviously you have to be reeeeally careful with any legislation that somehow restricts any freedom (like freedom of speech), but since every freedom requires boundaries to ensure other freedoms (like the freedom to live in peace and safety) and this is a historical, culture-defining fact and not some political agenda, we are absolutely fine.