There are standards whereby you can determine something is harmful and not covered by free speech. Like calling for violence against a demographic minority. That's not either censorship or in bad faith, but upholding standards for a civilized society.
It's basically no different than the fact that you are not allowed to kill people in the street.

If Brazil wants to shut down the service because of that: That is their right. Welcome to the same club as North Korea, China, and Iran. But what is that move with Starlink? When and where has it become acceptable to seize assets of a company because you have beef with one of its shareholders? What does this signal to other international activities in Brazil?

First: same club as EUA right? EUA banned TikTok so yeah everyone is in the same boat right now.
Second: The move with Starlink was: Musk has a debt with Brazil, he didn't paid the fines so the judges decide that they'll freeze the money from Starlink because they understand that both companies are on the same corporate group

It is not the government defining something as dangerous. It‘s the democratically elected parliament, the democratically elected government and the then appointed judges which rule based on democratically created laws. And if the society comes to the conclusion that hate speech, defamation and lies are not covered by free speech they can of course shut down X and co. And the law applies also to billionaires.

Its a shutdown for non-compliance with a law.

The law in non-compliance is an attempt to shut down misinformation related to an election where x refused to appoint a court representative. Rather than fight the battle in court they chose to just shut down brazil changing x from a brazil represented company to basically a purely foreign company similar to RT in the US.

Like there's a difference between showing up to court to fight for free speech and shutting down your offices so you can't argue your case.

Funnily enough, Twitter is not banned in Iran.

suppression of anything the government defines as dangerous

That's kind of one of the points of having a government... When it's applied to banning toxic chemicals or violence, that's the same thing happening but you just wouldn't call it censorship.

When I first learned about it, it kind of seems like school bullying or something criminal. "Give me 50000 if you want to keep operating". It's kind of funny, but it is also kind of sad. Anyway, the decision has it geopolitical importance.