You gotta love the 2-faced or 2-sided elements of MMA.
On one side of the grass, you have people in the UFC, as well as fans who are trying to market MMA as an athletic competition, a professional sport (be it a combat sport).
Then on the other side of the grass you have people who complain and claim it's a cage fight, or as the OP put it "two guys in a cage trying to physically destroy their opponent by KO, Submission, any way possible and that's all well and good. But oh no, someone displays the middle finger, we can't have that!"
Which is it? A professional sport, or something that resembles a back alley brawl?
What were people expecting when the UFC signed with Fox, and agreed to primetime cable TV shows? If this was late night television that would be one thing, but this is on at 8pm-10pm when kids are still up.
Look at what happened in the NFL a few weeks ago when the ref left his microphone on, and let out a "god dammit". He got fined. If the TV stations were operating on a tape delay they would have cut that out. You just don't do some things on network television, even if it's during a MMA fight.
Beyond that - would it kill the Diaz brothers to not act like f*cking idiots for 1 fight (i.e. from the time the fight is announced, to the completion of the fight)? There's ways to be a "heel" or get underneath somebody's skin without acting like a child.
Those two tools aren't even worth the money they bring to the UFC if you ask me - between the Strikeforce brawl, the GSP/Nick Diaz episode, drug suspensions and this, they are just a disaster waiting to happen. Somebody like Sonnen does what he does for fun, as an act. Underneath it all he's a pretty classy guy. These guys are the definition of everything I would never want my kids to be. They have no class, and they aren't even all that good.
If anything, blame the UFC for putting a Diaz brother on a network television card instead of a PPV where anything goes. Or blame the FCC - the guys at Fox didn't feel like paying a fine to the FCC -- can't really blame them for that. Has very little to do with Fox when you think about it.
It is a sport and there is the struggle to make it even more ethical and familiar, yes.
As my standard goes I want to see high quality technical combats between two ethical warriors.
We had some despicable moments during the show with the compliments of Tito, Kos, Brock, but those were moments while these two Diaz freaks are like this 24/7/365.
Wonder that becoming a trend. Can you picture GSP, Cain, JDS, Big Nog, Anderson flipping birds and cursing live from now on?
As I said before, Diaz brothers should never hold gold for the worst example they are for the sport.