From the story, it looks like it will require user reporting to initiate official moderation.  I guess terrorists will be reporting each other?

"All Telegram apps have ‘Report’ buttons that let you flag illegal content for our moderators — in just a few taps."

I don't see this appeasing the surveillance state.  They want a backdoor to see all comms and be able to block content they don't approve.  This is probably just the tip of the iceberg for what's to come with Telegram.  Hopefully, what ever happens, it will be transparent for its users.  But, history has shown otherwise.