LJ were fools for such a badly implemented policy. I agree with the basic policy. As publishers, they have an ethical responsibility for their publications. There are some sorts of speech which you can not remain neutral about. I don't blame them for that issue. Their bad implementation lead to a breach of trust, and that trust getting broke is a far larger issue.
Fandom showed themselves badly by taking personal offense and overreacting. C'mon folks. You are smart. You know that some of the topics you engage in are iffy. Enough of fandom works in the corporate environment to know how upper management can decide really stupid stuff that the rank and file knows is stupid. Put "iffy" topics together with "upper management", and it's a wonder this fiasco didn't happen sooner. It only takes one idiot.
It's easy to give LJ a red mark for this act. However, we forget just how many journals and communities that LJ hosts that are never interfered with. Never. Even with this snafu, they management is astoundingly hands-off and astoundingly in the corner of "free speech". Remember to give them green marks.
And also remember, friends do stupid things and sometimes you just have to forgive your friends.