Thank you for considering and responding. While I cannot change your mind, I can explain some of the strikes

1. This is not monetized platform, there is no way to pay me, no advertisements, no premium plans etc. I am guessing you are saying since it is not open source yet, it is monetized. That will change, we started working on changing architecture to use sublinks, but got stuck as sublinks itself is under development.
2. As soon as sublinks federation works, we will be able to adjust quickly. Without this I have only two choices - spend a lot of money or shut it down. I would like to avoid both if possible. Since there is no traffic, I am requesting the community to give us benefit of doubt.
3. The developer used various subdomains while trying to implement federation. As far as I know, the final subdomain was api.clubsall.com. My guess is that admins are blocking clubsall.com and not api.clubsall.com. If another subdomain is still active, please let me know.

When the OP was initially made, I actually did end up adding clubsall to the defed. list, but I feel like I might have done that prematurely. I took a brief look at the Clubsall website, and I couldn't really tell that there was anything inherently evil about it. Sure, the usernames and community names don't display the server they come from, but I feel like that's more of a frontend/design decision (any Lemmy frontend or app could do the same), and if you hover over the names on desktop (or click on them), you can see the URL still has the instance of the users and communities. Maybe that's a good idea for a setting that could be added, where the user can toggle whether the username or community domain is displayed or not.

Yes, there are still many improvements to be made, such as a link back to the original user on their instance would be nice, federation support needs to be worked on, and probably much more. And I will admit, the fact that they don't currently have a developer doesn't bode well in fixing some of these issues, but I feel like if we are going to block them, we should come up with some definitive reason, and have it defined in our kbin.earth rules list. If we block clubsall for being closed source and having incomplete federation, then we would need to block threads.net as well (for the same reasons). At the moment, neither of those two technically break our rules; if we were to block them, we would need to make a decision as an instance to add another rule.

The clubsall creator already made a comment in the OP stating that the open sourcing and federation issues were being worked on. I know @vinay_clubsall@lemmy.world isn't the developer, but maybe he would have some sort of explanation for the additional subdomains that are being used for federation, which appear to be used to dodge defederation (I haven't personally experienced this though). I try not to assume the worse in a situation, so I'd like to give Clubsall the benefit of the doubt. However, if it is found that they have evil intentions (such as dodging defederation), then I will definitely reblock the domain.