I agree with the OP 100%. And I mean that.
Just a little to add to what this guy says in this video - 1) insults, slander, and prejudiced attacks aren't considered as covered by the "freedom of speech" thing. The "freedom of speech" is, technically, only covered as the freedom to speak out against the government and voice opinions on the laws and activities of the government; it doesn't give anyone the right to verbally attack or harass anyone else. 2) The "freedom of speech" doesn't exist within a private business or it's spaces, virtual or otherwise, and that business has no obligation to let anyone say anything they don't like. Bungie had every right to mute and even ban any of those abusive players, and no "freedom of speech" will change that. The match was done within a virtual space that, technically, Bungie owns; that gives Bungie the right to allow or censor whatever they choose, whether anyone else likes it or not.