This is at the very least debatable. The site they took down contained multiple videos of animals being tortured and killed. Not all decisions are simple black and white.

Animals die too in a genocide. I don't understand your point here. Namecheap decided they should proactively police Namecheap customers for this, Namecheap should lose all its business as a result. Let Namecheap decide whether the income from Israel exceeds the income from all Namecheap customers.