With so many mentions of DMCA in the article, and the fact that the EFF had to go through a labyrinthine DMCA counter-notice process, you'd think I'd be allowed to comment about the DMCA...
Pedants will rage but you're spot on. The DMCA is a terrible law that has ended up causing lots of knock on bad effects, because there isn't enough incentive to prevent bad actors abusing it, and not enough incentive for companies not to do what Netlify did in this case.
The DMCA law did not _compel_ netlify to act this way, but the effects of DMCA did _cause_ netlify to act that way.
Apparently not. Sorry.