Based on the only recently removed user and their visible posts I'd say it's fair to call it not suitable for the community and also that they had a raw deal - should have been given a warning or something before the ban. I'd be happy to see content like that but likely would need a dedicated community for spicy memes.
I definitely think the community should call out the limits.
Thanks for sharing the mod log and your views!
That lack of communication along with a ban is a pretty important difference, thanks for highlighting it. Maybe the mod could also send a message to the user with the context of the ban, but they have to do it manually.
I appreciate your light touch on moderation, though I think you might want to have really basic rules e.g. no CP, to protect yourself as the apparent owner of the site.