I do agree that the ban was wrong. A warning would be much more appropriate. However...
Dont pretend like you dont know what is going on here. Whenever the word "JEW" is used on the internet, there's AT LEAST a 30% chance it is used in some sort of a conversation, stateement or an article aimed at jews in some negative way. Therefore, it makes sense that this word would be sensored on Bnet, where a large part of users are stupid, uneducated, racist 13 year old kids. I bet if you try to use the word N***er, it will be sensored too. but I bet you wouldnt notice that, and you wouldnt call that "history" because it has been beaten into your head not to use this term in this country. A Jew is a normal word you might say, while the N word is an insult... Wrong. In eastern europe the N word is used to describe the nationality of any black person, and no black person will take offence when called that.
Same issue with words "Hitler" and "Stalin" both words are often used in inflamatory discussions on the internet either directed agaisnt jews, against germany or against Russia. I constantly see people talking about Stalin in games like Guild Wars and Diablo. Such discussions often end in angry, hateful remarks toward Russia or United states. I constantly see statements ranging from "America is better than Russia" to "We should have nuked you while we still could during the cold war".
Look, no one is sayihng that you cannot have freedom of speech. That is your right. but take that freedom of speach to internet forums or blogs where it belongs! It really doesnt belong in video game lobbies because it affects young minds and leads to inflamatory discussions.