LOL what a response by hh.
Still it doesnt change the fact that you join table, block the seats just to threat people you will mute them for "lecturing other people" . As long as its not racist people can say what they want, its called freedom of speech. If this site is not able to block certain words like for example pokerstars does its their own fault.
Trash talk is a part of the game and you think you stand over other players and want to take this away from them. If players are bad and somebody tells him that they are he is free to do so, thats not up to you.
About the cheating I cant say anything, I can only rely to what other people say but I think HH actions and "power" go to far for just another player.
I joined a table with no waiting list and 2 seats open for 2 minutes to issue a player a verbal warning for abusing other players. I was unable to chat as an observer. That is a pretty rare occurrence, as most chat related issues happen in the lobby chat.
A little trash talk is fine, but abusive chat is not.