It does in fact cascade down the default trust and make sure only people who explicitly add me or do not add default trust, trust me, and even then those people who trust me do not factor into my own trust rating score.
I don't think you understand how the trust system works. Excluding you does not affect feedback left by others, your trust score has not been "harmed" by exclusions, It only makes
your feedback show up as untrusted for those who don't add you to their trust list.
I get removing me from the default trust list, that is fine if the rules are the same for everybody, but if you do not moderate trust ratings why did you exclude me, harming my trust score, because of a single rating I left that you demanded I remove but I refused? That sure seems like moderation of the trust to me. I tried to have a private discussion with you, but you are unwilling to communicate with me, turning me to the general public of the forum.
If you're fine with not being in default trust, then I don't understand why you care about the exclusion. People who trust you still trust you, feedback left for you isn't affected. The only reason to care about the exclusion is that you want to be in the default trust network and have your own feedback show up for everyone else by default. The other effects you seem to be upset about are non-existent.