If Blizzard didn't concede and bow to the Chinese government's nonsense then those same players who are getting banned wouldn't have been able to game in the first place.
I think going after Blizzard or capitalism in general in this case is egregious at best. Capitalist or not, it makes zero sense to ignore such a large and growing market, and with that comes the necessity to comply with laws and standards in that market.
This counts for ANY market you want to launch a product in. That those laws, standards and regulations in China are so ridiculous and problematic is the real issue here.
There's also a strong likelihood that Blizzard doesn't distribute or manage the games Chinese presence, and instead a Chinese partner is dealing with all of this. But Era is often good at selectively ignoring facts, context and logic so some of the reactions in here don't surprise me.