I don't see anything wrong with this. If the server admin doesn't want certain people on his server, he's allowed to say so. Server admins can ban whoever they want for no reason at all because it is their server, so they should be able to say "I don't want those kinds of people on my server" just as well IMO.
I'm not saying server admins should be able to name their server whatever they want. For example, some particularly racist or otherwise insulting servername shouldn't be allowed, but the way this guy is doing it... I'm perfectly fine with that.