I think in tough situations, self-preservation tends to take priority over ideals, so I am not surprised to see a business demonstrate double standards or inconsistencies when they're pulled into a situation that could threaten their well being.
Many people make up a company and one person's actions should not put everyone else under threat because that individual's beliefs is not representative of everyone else working there.
The actions of the competitor could have threatened many people's jobs, families, and lives so you can't blame blizzard for doing what they did.
The underlying problem is the Chinese government and how they black list businesses for not following their draconian policies to do business within the country.
Mentioning a solution like having businesses collectively boycott China just doesn't seem well thought. You can't just walk away from half of your market over personal beliefs, and another company within China would jump for joy at the chance to grab that lost market share.
The point I'm making is I think we should focus on the cause for all of this which is the Chinese gov rather than blaming someone or a company who has a gun pointed at them for acting in their own best interest rather than what is right. We're not the ones being threatened so it's really easy to call people cowards.