Removing users is certainly one approach.
However, in viewing the removal of the thread in question amid the context of the larger function of the board, we can see that the issue went beyond the prurient interests of a small number of 'boundary pushers' and had a more fundamental genesis--the question of whether erotic content was welcome at all on SB. Historically, from the very first instance of when it came up in the back room, the overwhelming consensus of staff and members has been that SB should not house this sort of content. However, Pete is a 'big-tent' kind of guy, he had lots of space on his server, so he said, in essence, "let's just fence off a little corner over here where nobody else will notice and let them post their content...win-win," and permitted the HCT in the Pub. (This was back when the 'boundary pushers' were posting Hot-Chick-Friday images in a Florida forum thread, which was generating post reports.) But the fact remains that even with that concession, the relentless seepage of the content into other areas of the board and the lewdness of the content both kept prompting a review of the essential question: does this kind of content belong on SB? After a fair amount of soul searching, Pete has decided that it does not and has removed from view the threads that were dominated by that content. He has even issued an apology for ever allowing it and has taken down his own contributions as inappropriate.
That's really all there is to it. The decision has been made that this kind of content no longer has a place on SB. Members who don't like that will just have to find other outlets for their interest in erotic images. If at this juncture they choose not to conform to the revised ToS, then your solution, Bob--voting them off the island--may have to be considered.