The way I see it, someone did a really, really shitty (a gas mask and chanting?) publicity stunt on a Blizzard event (Blizzard stream, Blizzard paid casters, Blizzard branding all over the place). Good riddance. If this is okay (because BAD CHINA), then you open the door to more of these .. actions and offer people a platform for their personal agenda.
I think Blizzard did the Right Thing™ (as in, they communicated quite clearly that you cannot hijack their events for your own stuff). The problem of "Can you say anything you want on a Blizzard stream" turned now into "You either support HK or are supporting China" for weird reasons?