> No, they folded because the United States Federal government threatened them.

Yes because they control the FCC and FCC has rules in regards to the content of broadcasts. Kimmel is free to say anything he wants on his own website or platform and such, but as soon as it's on the "air" rules apply.

> This is a clear violation of the 1st Amendment by the government against protected speech (no matter how many people find that protected speech distasteful).

If it's that clear the would have fought it. It wasn't clear at all. Moreover it was just a bad PR look instead of saying something like "condolences for the family blah blah" they would be defending Kimmel's phrasing. That's why they dropped like him a hot potato.