Thanks @RGJ and @osioke for your replies! Looks like it’s really up to how everyone uses Discourse. Maybe you don’t have Australian users and don’t need to worry or maybe you don’t host in the EU and have to be GDPR compliant.
Discourse is truly great at flagging and providing the tools moderators need, I 100% agree. 
You two have answered my original question, thank you!
But I do have a follow up regarding:
As a admin or mod I can delete a post or reply but it shows in the thread as “1 hidden reply” to admins and mods still. I was curious because in the case of unlawful content, removing the content from the server is also expected after some analytics are taken (like how many people may have seen it, how long it was up etc.). Curious if there were ways in the UI to remove the hidden content entirely from the server? Or is a programmatic solution using Discourse’s API the way to approach this?