Possibly observing the chaotic freedom of WordPress self hosted blogs, they wonder if custom domain publishing provides the same freedom.
If I pay for my domain, can I host porn with ads?
Unfortunately, custom domain publishing, unlike WordPress self hosted blogs, still uses the Blogger dashboard - and still publishes content which is accessible using "blogspot.com".
A Blogger blog, published to a custom domain, is still hosted by Blogger - and has a "blogspot.com" URL.
All blogs, which have BlogSpot URLs, are subject to Blogger / Google standards.
All "blogspot.com" URLs - published natively, or to a custom domain - are subject to Blogger / Google laws and restrictions.
All laws apply to all blogs.
Any Blogger blog, with undesirable content, can be classified as abusive.
A Blogger blog, published with undesirable content, will be subject to content penalties.
- "Adult Content" interstitial display.
- Malware / Porn / Spam deletion.
- AdSense / Search Console penalties.
Whether published to BlogSpot, or non BlogSpot URL, Blogger has very real penalties. And both AdSense and Google Search may apply penalties separate from - and harsher than - Blogger.
Custom domain publishing is not "wordpress.org" self hosted content.
So no, with even a custom domain published blog, you are subject to Blogger / Google imposed laws. You simply cannot publish what you like, and ignore the penalties.