The main issues are
1.) Consistency in their policy.
They banned Blitzchung for saying 'Free Hong Kong' for 1 year and took all his prize money, while they didn't punish two people at all for saying 'Boycot Blizzzard."
They later revised some of those decisions, but that was after massive backlash.
2.) China is an authoritarian regime that considers any unfavorable comment about their country as an attack. When it comes from inside their country, people some times diappear, never to be heard from again. (See the 'definitely not civilian dressed cops' that systematically beat up Hong Kong protesters, or police shooting them.)
When it comes from the outside, they use their massive economy to shut them down. (See the NBA debacle.)
This is likely not something any of us would be comfortable with affecting the products we consume, let alone our daily lives. So when our companies bend to this sort of authoritarianism, it makes people worried about the future.