> If anything, it is just going to cause people to sympathise with the Daily Stormer, which is presumably the opposite of the intended effect.
There are two different things you can sympathize with here: the merits of the Daily Stormer's position / ideology, and their desire to have a platform.
The domain registrar is shutting them down because they don't agree with the merits of their ideology. I am reading the criticism above as saying, "If the domain registrar shuts them down, more people will be sympathetic to their ideology, which is counterproductive." I think it is fair to label people inclined to sympathy with Nazi ideas as Nazi sympathizers.
I suppose it could be an argument that the domain registrar's action will cause people to be sympathetic to the fact that they should have a domain name, but that makes less sense to me.