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I think it's reasonable to want to have a space that's free from people that defend authoritarian regimes. From my perspective, at least, 196 has always been a more anarchist-oriented space, and I think it makes sense to try to preserve that.
I'd also make the distinction that they are not banned from this forum, in the same way that libs are not banned from posting on their instance -- but those that post there are generally met with hostility, and that preserves the character of their space. I don't see why we shouldn't do the same.
I'm happy to remain federated; I think the communities, mods and the instance admins (thanks!) do a good job of curating the community, and by and large hexbear users interacting with us on this instance seem to do so in good faith.
That being said, I would make the observation that, from my perspective at least, there seem to be more than a few hexbear users that are apologists for authoritarian regimes. I want to preface this by saying that I am of an anarchist bent, so am not exactly enamoured with 'Western' political systems either, but this should not preclude criticism of (bringing up the most often contested examples) the USSR or China.
That being said, discussion of these things are important and differing views should be seen, as I have often found enlightening articles or overlooked areas of history through reading these kinds of discussion.
Bottom line: I would remain federated, but ensure we maintain the character of our instance.