This thread just keeps amazing me all over again!
Whoever is calling the shots at IHG with regard to the account closures is extremely shortsighted.
I think in nearly all the cases, a courtesy warning and explanation of the unacceptable behavior would go a long way in preserving future business.
But now, these bitter former customers will no longer frequent IHG hotels and will certainly persuade friends/family/coworkers to reconsider using them too.