There's no "let it happen" or "don't let it happen" in Bitcoin. Luke can do what he wants with the blocks his pool mines, and anyone who disagrees with him won't mine on his pool.

As long as there is a substantial amount of miners willing to include Ordinals in blocks, then there is no way to ACTUALLY censor them. So far, it is looking like that will be the case for the foreseeable future, since OCEAN is the only option for taking a firm stance against including Ordinals and yet they haven't attracted even 1% of the hashrate.

It's the same thing with OFAC sanctioned transactions. As long as there's a substantial amount of hashrate out there that won't exclude them, they will make it into a block.