I dio see your points and I'm sure he's covered in the TOS that he can do what he wants; but it's a bad precedent to set. When one person acts as judge, jury and executioner -no matter how well intentioned- it is a bad thing. Always leads to the question "Who's next?"
Namecheap run a shitload of domains and statistically they are probably aiding and abetting worse sites than these alt-right guys. As a long-term customer of theirs I don't want them to start picking off stragglers....not because I have any particular fear of being picked off; just because it's the wrong thing to do. Arbitrary decisions from the people holding your domains is not a wholly comfortable feeling. There's no due process. There would almost certainly have been a takedown notice along shortly, so why not wait for that and blame somebody else?
I know he only did it for a free publicity wank; but not totally happy about it.