For me, the most telling part of this is, of all things, the /very first paragraph/ after the introduction:
> There appears to be a number of connotations associated with the term 'Snowflake' I was unaware of. In this context, I was only meaning people who I consider to be overly sensitive.
The core of the criticism that we fediversaries raised of the comment Kev is trying to apologize for is "you don't understand what we should or shouldn't be sensitive about, so your characterizing our sensitivity as 'overly' intense gives cover to the people on your instance to do us harm without moderator consequences as long as it's harm /you/ can't perceive."
The problem is "overly". Every connotation Kev disavows is a direct consequence of people with power accepting that "overly".
As lawremipsum says, the takeaway from this apology is that Fosstodon never intended to enforce the Code of Conduct language they borrowed from Toot Cat, in fact does not even understand what that language implied, and will almost certainly adopt a weak and poorly-enforced anti-bigotry stance instead. If you blocked Fosstodon.org over Kev's original statement, this apology implies your choice will continue to be correct.