That said, I think it is inevitable for any anarchist server that gets large enough to end up in this exact situation. MS wasn't going to let one of the biggest and most famous servers of its most popular game be filled with swastikas. Even less so when it's so popular with kids.
In a funnier world, 2b2t would have said 'no', but I have a feeling MS would escalate, and that whatever email or whatever the admins got probably implied as much, so maybe that world wouldn't be funnier after all.