It sounds kind of scary when you put it like that, but generally I've no principled objection to a server policing its hosted content for contract compliance as

It sounds kind of scary when you put it like that, but generally I've no principled objection to a server policing its hosted content for contract compliance as long as it's not the only hosting game in town. If I'm looking for a server, I get to choose whether I trust or want Rackspace. If I'm looking to provide a service, I get to choose whether I want to provide it to crazy dangerous guy. If the guy doesn't think he broke the contract (I don't know what he actually had on the site) let him complain. Otherwise, he can a) find another server that doesn't care about how nuts he is, b) set up his own server, c) exercise his free hate speech from his personal pulpit, or d) join the presumably already established subreddit for Bookburners against Censorship.