It's hypocritical and contradictory of them to state that they want to provide "a friendly, safe and welcoming environment for all", yet they turn around and almost right away use a very unfriendly and unwelcoming threat like "We will exclude you from interaction".
And how would you maintain a friendly, safe, and welcoming environment without removing people who would make that environment unfriendly, unsafe, or unwelcoming?
The moderation policy even states that anyone could be "indefinitely excluded". That's also not not creating a "welcoming environment for all"!
I think it's quite clear that 'all' involves only those people who obey the rules. If the code of conduct stated "We will exclude you from interaction if you murder anyone", would you then be complaining that they are such hypocrites because they fail to provide a "friendly, safe, and welcoming environment" for people who really like to murder?
It's a total lack of justice, as far as I'm concerned. Arbitrary judgment, arbitrary enforcement, arbitrary punishment, and no public appeal process all reek of injustice.
Yes it's so terrible, that's probably why so many people who try out Rust mention how friendly and helpful the community is.
A code of conduct is not like the law. When you are banned from the community (or leave it voluntarily) the code stops applying to you and you can happily complain about how unfairly you were treated on your blog, or slashdot, or wherever. There is no Rust-police that will come to your house and kidnap you. And the whole project is open source, anyone is free to fork it and start their own community.