Feedom of speech was installed by the founders not as a way to harass other citizens, but as a way to ensure that citizens could speak freely about the government. Remember that the Bill of Rights is made up of things to protect the people from their own government. Has nothing to do with being able to say what you want to another citizen. In fact, if you do so today, you will can still be punished for harassment or threats or "fighting words" that instigate others to violence against you or anybody else. Freedom of speech is our freedom to speak against government, nothing more, and anyone who doesn't understand that is sorely ignorant of both history and (to a lesser degree) the legal body since then. My right to swing my fist ends where your nose begins, and that is no less applicable in speech.

Luckily, WoW is a private enterprise, and can allow whatever it wants on its own servers (as long as it is not illegal). I think what irks people is that they have these TOS rules, and it seems like they're not enforced. Either they should remove such things from the TOS, or enforce it. Otherwise you have rules that seem arbitrary and leave much room for favoritism and apparent persecution. For example, if nobody gets punished for a certain TOS violation, but then a GM sees a player that he thinks is annoying doing it, he could then use the TOS as a weapon against that one player, while he/she was doing nothing different from anyone else. That is certainly Blizzard's right, but that's why people complain. If Blizz either enforced its TOS aggressively OR removed those items from the TOS completely, I think we'd see complaints about it go away completely.

And as for fascists... since Blizz is not a government, there can be no fascists. Private companies may ban what they wish (long as they stay legal), and doing is is capitalist by nature.