I have nothing bad to say about your moderation mate, save for your open-natured approach which invites criticism and (perhaps inevitable?) flame wars. I have done my fair share of moderation, and usually thread clean-ups would be carried out 'quietly' with PMs sent to offenders and contributers and then a message posted in the topic to notify of the clean-up. (or a seperate topic created to contain the 'bad' posts.
If things get bad, a seperate topic to discuss issues may be created...
But I can't see anything wrong with your decisions so far (unless of course you yourself are an advocater of the censorship poicy...
)
Anyway, back on topic...