Of course Google has that right. I question whether it will have the intended effect, though. Pretty sure isolating extremists tends to cause further extremism.

No, isolating the communities from which extremists are drawn causes further extremism, isolating extremists does not.

There is a challenge in isolating extremists while not isolating (and, indeed, productively engaging) the communities from which members are radicalized, and quite often brute-force efforts to isolate extremists (especially ones keying on race, nationality, and religion) end up isolating the feeder communities with the extremists, which is about the worst possible outcome.

Actually they are not. Once a domain is transferred it has a 60 day lock on it and can't be transferred to another registrar. It can only be transferred back to the losing registrar if there is some of accident or other clearly defined reason. This is to prevent people from shifting domains around primarily to avoid IP enforcement or UDRP problems.

Honestly this is a terrible precedent they have here. I am surprised they are doing this (if true and hence why I questioned the entire story) because it puts them at a disadvantage in future cases as far as 'why didn't you stop xyz domain registration that is now responsible for my child's death after I wrote to you and put you on notice'.

The fact that they were evicted from Go Daddy and only briefly (an hour) registered with Google is really the Daily Stormer's problem akin to your shifting domains around to avoid IP enforcement example.