Miners can decide to not include a certain transaction in their blocks, and if those miners have a significant portion of the hashrate, the transaction in question can be noticeably delayed.

Miners can even decide to treat certain transactions as invalid, rejecting any block that contains them. If those miners have a majority of the hashrate, they can effectively ban any such transactions from ever getting confirmed.

Presumably most of the current hashrate comes from miners that are not able or willing to operate below the radar of local authorities, thus they are prone to arbitrary legislation. So a geopolitically well-distributed hashrate is important for censorship resistance.