Don't punish your sister for having to tolerate or put up with a rotten FIL.
But first - big KOODOS to you for having the courage to get up and leave when he said something down right horrid to your husband.
That example right there might be the behavior he needed to straighten up, at least around the family. So really, way to hand it to him. Those are the kinds of boundaries people should feel confident practicing all the time. But we are taught to be just too darn nice sometimes. May I ask where you learned such confidence?
My recommendation: be civil, be polite, be extra loving and sweet to your sister and BIL, but definitely give it a go again. And if it does happen, you know what to do and also what an amazing example to your older kids who will undoubtedly be faced with similar situations in their own lives one day. Think of it as a potential learning experience. Families aren't perfect.
It is no wonder your BIL is the opposite. He had to live with that gross behavior his whole life and his dad was the perfect example of what NOT to be. So congrats to him too.