There is no moral high ground in gambling. The house has the edge, and has designed it to be so. Phil Ivey is a smart gambler and knew how to shift the odds into his favor without cheating. He requested specific things, such as a specific flavor of deck that came from the casino itself and a mandarin speaking dealer. The casino agreed to these requests because it wanted Phil to play. They could have said no.
Phil Ivey's edge sorting hack is phenomenal. That the casino thinks they should be insulated from smart players is unfortunate but it is their prerogative to refuse play. However, it absolutely should NOT be possible to claw back winnings from players who were NOT cheating, only playing smartly.