people everywhere should be able to hold their own conferences.
the question is, should the PSF fund them? that should be answerable with a clear yes or no in a timely manner, and not like it happened.
holding a conference named pycon requires permission from the PSF trademark workgroup. that permission has obviously been given. giving such a permission but then denying funding would be contradictory, but still be better than delaying decisions.
further consider that the people organizing the conference are not the ones making the exclusions. those are beyond their control. supporting the organizers might actually be a good thing. at least it is worth a consideration.
i'd like to assume that once i have permission to organize a pycon, then funding is a mere question of how much, and whether the expenses are appropriate, not whether it should be funded at all.