I don't think this does enough to destroy the data you're trying to hide. Each blue operation on its own is reversible, I don't see why stacking blurring operations, even if they affect different areas each time, changes things.
I agree with you in that most LGBTQ+ folks don't like being grouped in with incest-promoting games, but that's exactly what MasterCard and Visa are doing by forcing platforms to indiscriminately remove adult content.
It should be up to individual platforms to moderate this content on a case by case basis, not the payment processors.
Pornography is the canary in the coalmine of protected speech. When you give a group the ability to censor content on the basis of "obscenity", then that group and other groups can use this to label other subjects they don't like as obscene. LGBTQ+ interest topics are especially vulnerable to this, as it is often made the case that being gay or trans is only about sex. You don't have to consume pornography yourself in order to benefit from a society that allows it.