It is very common to moderate these things in any online game to make sure no one gets offended or put off by the things certain players put up. cRPG is one of very few online games where you can see sperm or penis banners and I think it is ridiculous that you feel entitled to having that. I don't see why the official opinion from the devs from 2012 would no longer count, and yes all of the banners posted by Panos broke these rules. You should feel lucky that you have been able to use them, instead of outraged at their removal.
Many of you Americans do not understand this because of your lack of any noteworthy or interesting history or any taste whatsoever, but many Europeans have an affinity with history and prefer to have a degree of authenticity, also we actually have a sense of style. It takes one look at the armour combinations that people wear on NA and on EU to see this difference. Regardless of your understanding of this, developers, even American ones, have nearly always chosen to moderate custom images and names to make sure everybody can enjoy the game and to ensure a reasonable degree of immersion in a setting. I can assure you that any new releases like Melee or if Bannerlord would ever support custom banners, would definitely feature banner moderation or a highly restrictive banner maker like WotR.
That said, cRPG is probably a lost soul and due to the inconsistent and sparse banner moderation in the past and we should probably just give up on it. I can ridicule the enjoyment you get out of ugly banners as much as you can ridicule the immersion we get from not having them, but I guess it is too late now anyway. I hope Melee will not let these things slide, actually I am pretty sure it won't.