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I think that as long as the situation is retained within the mud, a mud-owner should feel free to discriminate, or not, about anything he or she wishes.
The only thing I would object to is if his mud was a stepping stone to encourage people to do things -outside- the mud that are viewed as discriminative.
Example, your black/white/cheating thing..if a mud owner floats his boat by coming up with some notion that black people cheat, and decides he will site-ban anyone he learns is black in real life, then rah-rah sis-boom-bah for him, he wins. But the moment he starts posting in his game or on his website that he'll give people a prize if they can send him a photo of them standing over a dead black man's body, or that he otherwise encourages bigotry of other people outside the mud, that's where I'd draw the line.
It's his mud, he can do (or not do) whatever he likes with it. The moment he takes his bigotry and discrimination outside the his little pocket of packets on the internet is the moment he crosses the line.
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