@Setanta,
I agree with as well and I have children that I have taken to "nice" restaurants.
Those parents that do not teach their children to behave appropriate in this sort of venue is the reason. There are children who can behave and who have parents that teach them this way, unfortunately it appears there are many more that do not.
It is a private establishment and therefore can have whatever rules they want.
On an aside - did anyone see pictures of this restaurant? I saw it on the news and thought - by appearances, this is not what I would consider a "nice" or upscale restaurant.