It doesn't censor as it invalidates censorship to make a button that uncensored wherever there is censorship. It's not the quality of censorship, that is a stretch, it's the quality of hiding a post, or making content not visible initially that is worthy, that in itself is what makes it a staple here for curating shit content.
It's not censorship, addressing it by what it is, or flagging, curating, hiding content is correct, calling it censorship because of "censorship qualities" is a stretch and a meaningless one, either it's censored or it's not, so far people on the internet distinguish between flagged content and censored content, and they are very distinguishable, as one simply offers a warning instead of the content, or a black box, or usually no trace of the content, while the other simply warns as it presents the content. It's the difference between content being available and content not being available.