Your logic becomes flawed when you realize how many % of the world's open source projects are hosted primarily on Github.
Their actions are all legal and good, and since I don't live in America, the freedom of speech argument is invalid to me.
That doesn't make this sort or action OK, and should in fact be cause for alarm.
To quote my favorite comedian, Steve Hughes: "What offends me may not offend you. And you want to make laws about this? How do you make a law about offending people? How do you make it an offense to offend people? Being offended is subjective. It has everything to do with you as an individual or a collective, or a group or a society or a community. Your moral conditioning, your religious beliefs. What offends me may not offend you. And you want to make laws about this? I’m offended when I see boy bands for god sake!"
Don't get me wrong, I think GitHub's move is retarded.
It's just that no one has a right to whine about it any more than they have a right to whine about what their retarded neighbour does in their apartment. If your retarded neighbour has a "no cursing" policies in their home, you can either not be his guest, or not swear while in his house. Either way, it's his right.
* Either this is not OK for Open Source, and it will prompt people to move away from GitHub -- because, sure, we needed the INT_MAXth reminder that relying on a private third-party for a free service is a bad idea, or
* This is something most open source projects have no problem with, and they'll just keep going, while leaving open source "radicals" like you and me to whine about it.
Github didn't just magically become this super important center for open source work. It's an important center for the open source world because a lot of people are using it.
It can stop being an important center, that's not a problem.
GitHub, because that stuff is hosted on their servers.
This is not about Open Source. This is about GitHub.
Yes, it has no place in Open Source. Whether or not it has a place on GitHub is, however, up to GitHub itself.