No that was Inworldz. Digiworldz is the grid that I think absorbed the most Inworldz refugees after that grid closed for good.
Yes, Digiworldz was the answer for the Inworldz refugees at first but many - maybe even most - of them eventually ended up on TAG, the only surviving alternative grid that is off the hypergrid. (TAG actually grew from 50 to more than 500 sims in the months after Inworldz collapsed.)
I visited DigiWorldz a couple of times while HG-hopping and I did notice signs and information that there were some grids you could not get to from Digiworldz, banned for hosting ripped stuff.
Unfortunately that is fairly standard procedure for serious grids these days, even the OS Grid was forced to do it eventually. There are two grids, based in a Central Asian rather lawless country, that are all about copybotting and other grids had to block them partly to avoid being caught in any legal issues that may turn up but also to protect the work of their own content creators from being ripped. GCG may be in the darker end of the grayzone (and is blocked by several other grids because of it) but those two grids are pitch black.
And it should. What kind of jerk cuts off paid-for DNS service because of some petty and unrelated personal disagreement with the grid owner?
The comments of that article are amazing. The DigiWorldz guy says repeatedly over and over again that he cut off the DNS service because in the midst of the argument the GCG owner told him to, e.g.
Yes, he really doesn't argue his case very well.

But with that being said, it does take two to have a fight and I think we should keep in mind that GCG has a history of being involved in conflicts and Digiworldz hasn't.
I do not believe those "rude things being said in public" were the real reason for the mayhem. That's just business as usual for the CGC owner and I think everybody are used to it by now. It's more likely they were the last straw.
Even so, Digiworldz' reaction was unprofessional and out of place, there's no doubt about that. How it will affect their reputation is hard to say. Most people won't care of course but some will resent it. But on the other hand, there will also be people that will think it was about time somebody stood up against CGC.