Diane, I know I'm not Malc, and I know absolutely nothing about any team games, but I think you made the right decision. If the parents and the coach of the other team think that their children's behaviour is/was acceptable, then 'pulling the plug' was the only way you could go.
If no other team will play with them, then they'll get the message or, at the very least, all the little shits can be teamed up with each other!
(My first instinct is for hands to meet backs of legs but that would bring you down to their level!)