Worth noting Birdwatch launched alongside the ability to report tweets for misinformation, a feature Elon disabled. For that reason it’s difficult to conceive of Community Notes today as a simple continuation of the Birdwatch effort.
I think he was right to disable the ability for Community Notes to actually report and remove tweets. First, it's a vector for abuse. Second, misinformation is a loaded term and having the context along side the content is more important for an informed public.
Of course anything illegal or against ToS should be removed and only be the purview of Twitter's moderation team (or what's left of it).