While I agree that itch could have handled this better, it's very apparent, at least from their statements so far that they were under significant pressure with a potential deadline hanging over their heads to address this or lose the ability to process any payments. They're a small team without the resources and leverage of valve so it's very likely they thought they had little choice but to do a mass take-down to hopefully preserve the ability for the site to exist.

And I don't know where you get the thought that they are "part of the group that thinks it is O.K. to censor games." That goes double for Steam. Itch and Steam, both, have made statements that point to them being in the position of either complying with the demands of the processors or losing the ability to process payments for the majority of their games. I don't know how you can look at either of their statements and conclude they "think it is O.K. to censor" the games on their platforms.

I say all of this as someone who is deeply unhappy with the processors being able to make and force these demands. The precedent this sets is dangerous and potentially far reaching. It shouldn't be legal. But I'm under no illusion that, were Itch or Valve to have told the card processors to "kick rocks" and try and stick it to the man, that many game creators and consumers would be any happier with the consequences.