When people who submit these complaints don't feel like you acquiesced in their favor they will assemble and call you out. Your service will be known as a safe harbor for groups of ill repute and eventually you may be forced to shutter the service because you're now known as the person enabling groups of ill repute.
I'm not saying it's right, I'm saying that's the cycle that history shows takes place. It seems effective at chilling the content in question and the service providers who serve it.
Examples: voat, rumble, Nchan, Nch, parler, the list goes on.
I absolutely agree, and in my opinion we already see this with DMCA.
The general cycle of "abusive users look for platforms that look the other way, while non-abusive users insist on platforms that don't" still applies. But the concern is less "Nazi[0] bars" and more "The Pirate Bay".
[0] FWIW I do not believe that it is possible to censor a Nazi.
b) They did not notify the repo owner, and took several days to respond.