Well I read everything I could and I just don't see the infraction. I'm sorry if what I say here departs from many folks I often tend to agree with - especially if they are prone to get upset by something said here in La-La Land - to me this is just about opinions after all.
I, like anyone else, have a right to opinion and in my mind I don't expect my opinion to insult anyone and/or to reflect upon anything beyond its own utterance - not here at least. Moreover, in this case, I really think everyone has a right to an opinion here - this isn't just a matter of "X dojo did this, so its their business alone - everyone else shut up." Everyone's opinion counts here because X dojo sought to "remedy" an in-house situation in this forum - publicly.
That said: For how they felt moved to act, and because of how they chose to act, all I see is one group of folks thinking a bit too much of themselves (there's no kind way of saying that I'm afraid), such that they felt everyone reading this stuff was going to think ill of them for what someone of obvious ignorance and ill humor was saying - when in fact no one was thinking about them at all.
A little humility, a little smaller self-image, would have gone far here concerning any imagined sense of dishonor and/or insult, etc. For me, whereas I might laugh it off if someone told me they ended up training with James Smith, I might be a bit more serious if I found out someone was thinking about training at X dojo - "Oh man, those folks like to think everyone is thinking of them - be careful man, sooner or later you are going to find yourself out in the cold or else you'll find yourself working to put someone else out in the cold."
One can say this or that about this or that infraction, and how that may fit between "traditional dojo values" and humility, but when one looks at the public statement being made here - there's no way one can say one is not dealing with a bunch of folks that think everyone is thinking about them. If you want to kick someone out, if you feel a right to kick them out, then kick them out like an institution that is not so easily threatened - with discretion and without any concern for what anyone else thinks. If you want to act all-powerful, then be all-powerful. For some reason I feel compelled here to say, "Do it like a man!" But that might start another thread and end up with me being publicly discredited (which of course I wouldn't give a damn about!)