Well, yes, sort of. It's not that not getting cheered is hurtful to others; but rather, that the asshats who whoop and holler at events like this are ruining it for everybody else.
It's not "free speech" that's at issue, it's just manners. People used to understand good manners -- more and more people these days do not.
“It’s bad form to withold diplomas for cheering and even seems like a violation of free speech. Regardless who’s hiring Nazis to hand out diplomas anyway?”
I disagree. I’ve been to several graduations and over the last several years they have become a joke as far as dignity and formality go. Many people literally act like idiots during the proceedings to the point that you can’t hear what is going on. Air horns, yelling out names, whistles, and constant talking during the ceremony by audience members are the norm for most school graduations - and even in formal orchestra or choral concerts. No one is taught decorum anymore - it’s considered “elitist” by many. There is a time for cheering out loud and there is also a time for quiet formality. Unfortuately most people do not know the difference.
I’m not sure that withholding the students diplomas forever is the proper course - maybe just for the graduation ceremony itself - then mailing it later to the family. The only hook the school has is that diploma. If they don’t enforce it, the behavior will never change. I guarantee that next year, they won’t have this same problem.