My issue with this is that in a way it gives strength to their argument - i.e. segregation reinforces the concept of there being a fundamental difference between the two groups.
Well, practically, there absolutely is a difference. You can host above-board content any way you like, even on things like IPFS, and tell anyone who makes fraudulent copyright claims about it to sod off-- but if you're not being totally above-board, you won't get that luxury. It's a very different trade-off compared to the likes of SH and LG, and one that's quite valuable.