I don't know about crazy, but definitely misinformed about both MMA and what solid Scriptural understanding would indicate. That is a common knee-jerk response for a lot of religious, though. As an evangelical myself, I know it can be a short putt from a solid Scriptural belief to wild theories that see the Devil behind every rock, tree and shrub.
A sport, whether a combat sport or another competitive endeavor be it soccer, baseball, or even darts, cannot be intrinsically evil, and it is the responsibility of the viewer/consumer to determine their threshold for what is productive, and what is excessive in their own lives. If you let the watching or participation in MMA take your focus off of what is really important, then of course the potential is there for it to be harmful and not at all edifying. But that is the case with almost anything. The wholesale rejection of a sport, just like wholesale rejection of all alcohol consumption, (or wholesale rejection of dancing or whatever else has been deemed 'sinful' 'satanic' and 'the instrument of the Devil' over the years) is ultimately not coming from a solid foundation in reason or Scripture, and is not the best example for a believer to be setting.
Too often as Christians we get pigeonholed by what we speak against, more than what we speak in favor of, and this guy is really not helping by perpetuating that kind of belief.