So far, the censorship resistance story on Ethereum has gone something like this:
- ETH staking is permissionless to join
- stakers can decide to include txns... so even if 99% of staking nodes censored tornado cash txns for example, it would just take 100x longer
This has worked out, in my opinion, more or less OK.
Even at peak Tornado Cash censorship, only 90% of nodes were censoring TC txns, so txns should have taken 150s instead of 15s.
This setup allowed node operators in the US who could potentially face legal risk for interacting with and facilitating txns to the sanctioned addresses (up to 20 years in prison for a sanctions violation) to simply filter them out and continue participating in the Ethereum network.
Even with the block builder oligopoly, only 2 out of 3 of the block builders are censoring, and as the OP mentioned, 90% of the rest of the validator set is NOT engaging in censorship.
What FOCIL does is FORCE INCLUDE TRANSACTIONS FROM SANCTIONED ADDRESSES, such that VALIDATORS CAN NO LONGER CHOOSE TO FILTER THEM OUT.
FOCIL would coerce ETH validators to include sanctioned address txns, and in doing so, could call into question the legality of ETH staking generally.