I am very sorry to hear this, it must have been heart breaking to encounter this.
I have heard that young babies will sometimes be killed by adult males, although I do not know how common this is. The momma squirrel will spend a great deal of time right next to her babies, especially during the first couple weeks, hardly leaving their side at all, both to feed and care for them and also I suspect to protect them.
This male sounds particularly vicious, the fact that he killed the momma squirrel is very disturbing. I have several black squirrels in my yard and while a couple are pretty tough, one is very gentle. There is a continuum for behavioral traits among all animals (including people) and it sounds like this male squirrel is just particularly aggressive and territorial.
I must confess, I do not know how I would react after seeing this. It may be on the far end of what is considered "normal" male behavior but I would find it hard to forgive this squirrel for this act. I certainly would not feed it as I would not want to encourage it to hang around in my yard. But that is a very human viewpoint, what this squirrel did might make perfect sense for a large, wild male squirrel?
Gods Speed loving Momma squirrel, may you travel to somewhere better along with your little babies.