When you consider that LTG and Ceroblast got permabans from EVO for discriminatory comments said in public spaces online, it wouldn't be fair if Mike Z got to walk away without facing similar repercussions. That's why I think at least EVO needs to remove the game from their lineup this year and ban Mike Z from EVO-related events.
I'm sure that the Skullgirls community doesn't want to see this happen but they need to realize that this incident is bigger than them; it's about holding people in power accountable for their actions. Mike Z's comment was horribly distasteful and offensive to POC and victims of police brutality, as his joke made a mockery of their fears and actual suffering.
This is why I think Mike's action is serious enough for him to face some consequences. A simple apology will not suffice. In the video, you can see that Mike even paused slightly before telling the joke, which makes one question if the pause was because he was thinking about the possible fallout that he would get for telling the joke, which hints that he knew what he was doing.
It doesn't matter that Mike Z is a game developer or has clout in the FGC; he needs to understand that he can face a similar fate to those who have done similar offenses.
I concur, they should make an example out of him and do this.