I agree this is smart, because it's a win-win for Warren: either the ad remains online and it does its work, or it gets taken down and that's a forced Streisand.
But I don't think this is an overreaction, specially because this isn't solely about Facebook: if Google removed or downgraded search results for Warren - a US senator and presidential candidate - that would be a worldwide scandal.
Antitrust issues have been risen when Amazon promoted some products over others.
The main questions, at least for me, are: what kind of action is acceptable for these companies? Have they grown beyond their own governance?
And this applies to other companies as well. If Twitter were to shut down the POTUS account for violating TOU, people would also wonder the state of limbo of some platforms: should everyone be treated in equal terms? Does it bear some responsibility as an intermediary for public officials? Should it be subject to some standard verification protocol other than the one put in place by its engineers?
It also raises questions for the user cases: should governments and public officials use social media indiscriminately? Traditional media has a certain democratic access to government: should governments give a specific social media platform preferential treatment? Should there be a call for bids when choosing a social media platform over others?