You're being a bit disingenuous here. You sent his 60 Steem to @null, and showed him the cap. You were about as insulting as possible, and he was right to be offended. I don't agree with his actions thereafter, but you should own up to yours that greatly escalated the disagreement between you.
One of the things that most bothers me about this is that Steemit and other UIs using it's APIs have resorted to very centralized censorship as a result. I see this as perhaps another route Steem might tumble down over the cliff of censorship, which will end it's utility to many.
Mal would disapprove. He was all about opposing censorship and centralized authority. Like him, faced with it, FTG has rebelled. Mal would have too. Due to your central causative effect, it would be nice if you did what can be done to enable users - not UIs - are availed this censoring ability. I reckon if that censoring is necessary, it should be individuals that effect it on their blogs personally, rather than creating imperial force that can be applied to the entire platform.