I'm not certain where anyone said the party should have been closed down -- "closed", yes -- but I saw that in the sense of "closed party", not "closed down party".

Check this thread and the one over at the arisia; at least one person said in no uncertain terms that Arisia should have closed down the party. And it was implied more than once that these people shouldn't be let back into Arisia until they didn't do that kind of thing any more.