The concern has frequently been voiced on LW that rationality needs obvious wins in order to demonstrate its utility. If LW can't even get moderation right...
One of the many reasons I left academic philosophy was that I saw how academic philosophy was run. No one liked it, and it seemed that very few people liked how colleges in general were run, but still I saw nothing being done about it. If people who basically get paid to think can't even sort out the internal affairs of their own field, there's no reason to assume they're particularly good at thinking. If some of the most prominent practitioners of rationality can't even come up with a sane moderation policy for a rationality site, either their brand of rationality is flawed or they aren't applying it correctly.
You're asking the wrong question. It's not "why should it be here?"; it's "should it be deleted?". It's not necessarily the case that every post you think ought not to be here should be deleted. You may not always be right -- and the positive karma of the original post suggests that you weren't generally agreed with in this case -- but even if you are, unannounced, unexplained arbitrary rule is decidedly suboptimal. The indirect consequences of moderating actions must be considered.
Vladimir_Nesov is right: people don't like it when moderators do surprising things. I've seen this happen before: on a forum I'm on, the admin demodded one of the moderators for questioning some of his actions, and then banned four of the regulars because he decided he didn't like them. A lot of people left after that.
Arbitrary, muddled personal rule without concerns of the indirect consequences of actions seems to be the default mode of human organization. That doesn't mean it's at all justified. Rationalists should be able to do better than Hastings Banda.
This is the second time this week that an administrative action has been taken that was obviously not thought through. Either LW's brand of rationality is flawed or -- more likely -- LW's moderators aren't applying it well enough.
to be fair, bounded rationality is very reasonable, since rationality takes mental effort bothering to apply it to contexts that don't really matter to you is probably not worth it. I doubt Eliezer gives much of a shit about how Lesswrong.com is going these days, and his ban was almost certainly because that post annoyed him (as it did me).
My stupid fanfic chapter was banned without explanation so I reposted it; somehow it was at +7 when it was deleted and I think silently deleting upvoted posts is a disservice to LessWrong. I requested that a justification be given in the comments if it were to be deleted again, so LessWrong readers could consider whether or not that justification is aligned with what they want from LessWrong. Also I would like to make clear that this fanfic is primarily a medium for explaining some ideas that people on LessWrong often ask me about; that it is also a lighthearted critique of Yudkowskyanism is secondary, and if need be I will change the premise so that the medium doesn't drown out the message. But really, I wouldn't think a lighthearted parody of a lighthearted parody would cause such offense.
The original post has been unbanned and can be found here, so I've edited this post to just be about the banning.