I feel like there are a fair few dual use words where it is appropriate to disallow the use of the word. In English these include Cock, Dick, Pussy, etc. In foreign language they include false cognates, like the french "phoque" (seal) as well as words like "jihad", "Isis", "kampf" (struggle, like Jihad, but in the west overwhelming associated with Hitler's book) and other names like Adolf.
To me the story in the OP is not disallowing Jihad, which is a non-story, but the bungled followup as a result.
I have to laugh at IvanJ (Ivan being a name that in the west invariably evokes Ivan the Terrible, not exactly a guy lacking in blood on his hands) arguing that not censoring the word jihad is political correctness because jihad has caused so much death that the mere mention of the word hurts peoples feelings. Ivan, you are aware that political correctness does not mean "fuck the political left!!!!", it refers to asking people to modulate their tone or word choices in order to be kind to the sensitivities of others. You are arguing for political correctness. Good for you, being kind to other people is a noble goal. But please own it rather than trying to weaponize it, dude. Edit: Ahhh shit, I should say another moderator pulled the ban trigger, I don't ban people I'm discussing stuff with, and now this post looks like I'm gloating :/