No, this is google enforcing a harsh penalty for one site to discourage other people from trying to game search which basically makes us all suffer through content farm links, etc.
I don't agree. I see the need for punishment of this kind of behavior, but removing the site from a Google search that seems to specifically be looking for that site is a bridge too far in my book.
It's pretty much the standard harsh google slapdown. Has happened to many other sites. I imagine they'll get out of jail sooner rather than later. It's meant as a punishment I think, not just a correction of the terms that they ranked for unethically.