"You can't publish it if we don't like it"; is editorial control. "Change this or we will take it down"; is editorial control.
They asked for a specific change: the removal of the name. That seems like editorial control to me. They took the view that anything embarrassing (even if not private) about someone who is not a public figure cannot be hosted on their servers. That is an editorial policy and they are asserting editorial control.
It isn't completely clear to me that he was breaching the terms. The closest part of the quoted terms is "harrass and embarrass". If it was an "or" then he would have breached them as an "and" I don't think he has unless there is further unrevealed harassment.
Regardless of whether it qualifies I would have expected the clause mostly to be used for serious harassment and/or posting nude images of people rather than accurately quoting statements that they have made recently.
See my reply further down. I disagree with that characterisation.
I also note that asking for particular changes was a mistake. They should have stuck with "take it down or we will take it down", to avoid people making the argument you just made.
If only because being seen to exercise editorial control might introduce significant new legal risks that the ToS, and its policing, is presumably meant to avoid in the first place.
If they have the final say on whether you can publish they have editorial control. A request to take down a whole article would be no better in my view. They are entitled to have TOS that do this and apply it strictly (although I don't actually see the breach in this case but we can we assume there was one for this discussion).
I don't like the article and if I was editing a paper or a website I would not publish the article in that form but DO is not a publisher but an infrastructure provider and for something that is not clearly illegal it seems highly inappropriate.
However they have guaranteed that I would not use them for any public facing service or content by stepping in this way (I might consider them for testing, internal or pure compute workloads).
They asked for a specific change: the removal of the name. That seems like editorial control to me. They took the view that anything embarrassing (even if not private) about someone who is not a public figure cannot be hosted on their servers. That is an editorial policy and they are asserting editorial control.
It isn't completely clear to me that he was breaching the terms. The closest part of the quoted terms is "harrass and embarrass". If it was an "or" then he would have breached them as an "and" I don't think he has unless there is further unrevealed harassment.
Regardless of whether it qualifies I would have expected the clause mostly to be used for serious harassment and/or posting nude images of people rather than accurately quoting statements that they have made recently.