itch.io

It doesn't fix the problem, sadly it leaves 2 options, accommodate the new dynamic and look for ways of supporting both developers and the stake holders pushing the changes, or try to challenge the situation, neither of which is easy or straight forward.

It would be simpler if there was an approach that allowed itch to continue much as it has been provided some additional controls or accountability measures were in place with a reporting mechanism to appropriate stake holders.  Rather than a blanket ban, this could allow for the Payment handlers to gain clarity over how itch intends to control such material.

As much as payment handlers shouldn't be able to enforce censorship beyond legal parameters, because they are operating to their own policies, perhaps there's a way that providing them with some visibility of itch's controls (present or planned) that could improve the relationship.  If they are trying to enforce a blanket approach that goes beyond legal limitations, then they should be able to explain to itch why they are taking the stance they are.

Without reasonable discussion to understand what the limits are and why, there can't be a way forward.

If they are unwilling or unable to provide an appropriate reason for the enforcement of their policies beyond legal limitations, then they are likely breaking the law in some respects and could be held accountable if this is the case.