I am sorry you were put in this position
Let me start off by saying in no uncertain terms, throwing knives, drinking too much, falling asleep on the sofa, and asking to stay over all seem to cross various lines (some more severe than others). And you should not be made to feel unsafe in your own house.
If this is truly a friend, I would at least try to work past this. For the sake of the relationship and the sake of an individual that I cared about. For example, if this was a one off, perhaps you and your husband can offer a chance to explain (as has been mentioned perhaps something stressful happened, though that is not an excuse) and make it clear that it was unacceptable. From there I would decide how to proceed.
Another thing to consider (I am making the assumption that this friend is a similar age as you) is an age related neurological condition or decline. Perhaps this friend has a neurological condition (diagnosed or undiagnosed) that makes them prone to emotional outburst and the mean look/anger was embarrassment/directed at himself for his behavior. Unfortunately I have seen this pattern in family where an uncontrolled emotional outburst results in frustration and anger (which can be self directed or lashed out). Some of these conditions do get worse in the evening (sundowning) perhaps coinciding with dinner. Again, I am not saying you should place yourself at risk or discomfort to accommodate them; but this would complicate things.
As has been mentioned is your husband on board with this decision, what about the group of friends?
Finally, I don't thinking ghosting will work. First you run in the same circle of friend and are likely to continue to cross paths or be mentioned to each other (or he will hear about an event at your house and assume he is invited, if he has been routinely in the past). Second, he has been in your social circle for 5 years and coming to your house twice a month for years (that is to say he knows where you live). Which brings me to the third item, if he truly gone "off the crazy train" of developed some sort of degenerative condition impacting his emotional stability you should at least be prepared for additional social boundaries to be crossed during the seperation and the subtleties of ghosting to be missed.
In the end you should and must do what is best for your safety and mental well being.