Removing is absolutely the right call (both because racists will it as a signal, and because innocent users will wear it without knowing the connotations), but I also don't agree with how hard the Waypoint article ascribes malice where none has been shown.
its green coloration, and the shape of the KEK lettering are obvious signals. [...] we cannot continue to buy the innocent explanations for actions with a clear, violent intent.
There are completely plausible explanations for the design that don't involve a "clear, violent intent" - for instance, maybe a designer saw it out of context and didn't make the connection to Nazi Germany. I certainly didn't, even in the context on this thread, until I read the explanation. When I imagine Nazi symbology, I think of the national flag; I was unfamiliar with the war ensign on which the "Kekistan" image is based.
I'm also not sure how the shape of the KEK lettering is an "obvious signal" - they just look like generic Ks to me.
I think the bigger misstep might be the current error message for the item on Bungie's site:
CLASSIFIED Keep it secret. Keep it safe.
Given the context, it's really hard to not read it as "Keep [your racist insignia] secret. Keep it safe[; you never know when you might need it]".
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