Changing characters to scrub them of LGBT characteristics that are illegal in another country is cowardly and should have caused a much bigger outrage than it did.
Banning players for supporting pro-democracy movements outside the game and retroactively seizing their winnings is horrific. Nothing about their rules says they had to do this, it was entirely at their discretion. The chinese government didn't even threaten them over it. They chose to make an example of Blitzchung within minutes of his statement. They went above and beyond to endear themselves to the CCP. If they want to win their reputation back, heads need to roll, and if that means the loss of the chinese market, too bad.