i had now time to try it out too --> for me it works with joomla 2.5.9 and EL1.0.2
I am using this variation with excluded categories in the eventlist!
And I had to exclude my category "deleted" in the eventlist menu
1) I created a new category "Deleted" with rights for my testuser. He is allowed to create new events from frontend.
2) I login as testuser and create a new event. After saving it is shown in the eventlist.
3) I click in eventlist my newly created event and change the category to "Deleted", I save.
4) The event is away in the eventlist.