From what I have read around the various MMA sites and the general direction of the UFC, this decision is to appeal to the mainstream crowd. The UFC has recently made deals with networks like FOX to show their fights. Due to this increased exposure, more fingers have been jammed into the decision making pie and the politically correct crowd has won. The decision to try to make a sport like MMA seem more politically correct is somewhat odd to me, but these days, so are a lot of things going on in the world. The more big networks like FOX get involved with MMA, the more we will see this type of stuff happening. But of course, this is just my opinion and nothing more.
also...Chael is an animal and a world class wrestler along with a world class entertainer. If you are distracted by his persona outside the ring then you are paying attention to the wrong thing. If we followed that logic, no one would be able to watch the NBA or NFL, and those guys aren't putting on a show. Chael competes on the highest level of the hardest sport in the world, that alone should make you consider calling him a chump a little more seriously.
edit: by "appeal to the mainstream crowd", i meant....give the mainstream media as little cannon fodder as possible. Most UFC fans will have zero issue with knife and gun sponsors. But unfortunately, the UFC and other mma promotions must constantly work on avoiding bad press and names like "bloodsport". When someone who is not an mma fan sees a fight, sees the blood, violence and intensity, then sees a gun or knife promotion, they might make ridiculous connections and assumptions as they so often do.