I'm not saying that devs or mods or whatever can't limit speech. They can do whatever they want.But I don't support telling someone what they can and can't say. Personally I think the guy did overreact because no one really knows who you are on an online game so who cares what he says. People are such babies these days. Man up guys. You're like a child in a playground pointing fingers "He called me bad word"
Racism isn't the only thing that's offensive in speech. Your personal text is homophobic. And according to what you wrote, I could get a screenshot of you saying "FA yourself, faggot." and get your "ass outta the server"