Yeah, I have a similar view.I haven't read the blog, but that runs counter to my own experience running a (much smaller) LARP. In my experience, the kind of people pulling the heinous shit described above will just find something new to be heinous about if you take away their current toy - As an example, another topic that was brought up as a locus terrible behavior is "in-character" use of ethnic or racial slurs. So really, you're just choosing which version of Whack-A-Mole you're playing - either you're repeatedly banning whatever topic/gambit the terrible players have discovered this month, or you're repeatedly fixing/banning problem players as they come up. And if the kind of people we're discussing are being protected by the larger organization, then I don't think it's necessarily surprising if outsiders start to wonder if your larger organization is really a net positive for the hobby, or if the infection has spread too deep. Which, actually, seems to be a decision you yourself faced.
However! I am not Shane, and I cannot speak to how he may feel personally about various organizations - only what he actually said in the panel, which as I mentioned seemed very professional and encouraging.
If it's the case that this is necessary because an attempt to tackle individual problem players is doomed to failure, it does raise some questions for me about the MET organisation as a whole. Yeah, this is better than nothing. But it still feels like sticking a plaster on a broken leg.