I don't see any particular problem with that. The Admins know what they are doing.
... woah.
That's quite the statement. We've apparently come quite far from the idea that adminship is no big deal. Not that I have a problem with that, per se, but telling non-admins to trust "the Admins" with policy decisions is something that seems a major departure from previous practice here.
We are talking about very rare cases. The particular case in question is quite remarkable.
We have a choice: WP:OFFICE where actions are carried out by single staff members or by me personally (which does not scale, and carries with it enormous risks of bias), or relaxing just a little bit and trusting the community of admins to oversee each other.
What is NOT a choice is keeping vicious crap up on the site while people discuss it. There's no point to that.
I completely agree, however you should probably have phrased it better. Only allowing admins to decide on matters like this *is* a problem, however, it is a lesser problem than that of letter everyone see potentially libellous content. Saying it wasn't a problem at all gave people the wrong impression.