To the extent that the organizers received both publicity and validation that they were outlaws, yes.
It is also society’s loss to see the state and her leaders lowering themselves to such spiteful tactics.
If it’s against the law, arrest them. Denying them access to civilization is just the sort of retributive justice that makes so much of US law and order problematic. What next? Ban them from buying food? Force them to wear dunce hats in public? Throw them in the village pond and see if they sink?
Arguably it’s far more serious than a law and order issue though. A CDC cordon and enforced quarantine would have tackled the actual issue: public health.
I actually see it as the opposite as "lowering" or "spiteful". Without political food coloring and posturing, it's exactly how you'd address bad behavior in a child or animal. Use a very simple measure that is not overly punitive (no jail time!) that is directly targeted at stopping the bad behavior. Once the bad behavior has stopped, you are done. Repeat until they learn to associate bad behavior with negative outcomes.
I agree that they will just find a work around but I think it still helps. The more of an effort they need to party the less it will happen. The city can just keep adding problems to the party until it becomes too much of a hassle. They could hire parking enforcers for night shifts and when a party happens start towing cars not parked properly. They can set up police road blocks and annoy people and hassle them. I’m not very creative but I’m sure there are enough ways a city can mess with you to deter a party. They can do property assessments and city could argue due to popularity this property is worth even more and tax them. Just sitting idle certainly will not deter them though.