I don't advocate a permanent ban without warnings for either and I think taking a stand against racism and being politically correct are 2 totally different things entirely.
Moongamers, a community that I have been a part of for many years has fairly simple Rules of Conduct that more multi-player rooms should have. Heres a couple off the top.
IF YOU ARE FOUND ACTIVELY USING A GLITCH OR AN EXPLOIT YOU WILL BE BANNED!
If you were banned for cheating or hacking, don't try to pull one over! You can always plead your case, but if you were banned for cheating it's likely to stay that way.
First and only offense is a permanent one. If you care to type that language in text, you will take a vacation from Moongamers servers.
Moon server players must have a name. Racist or offensive names will also not be tolerated. No-names and names with single symbols and/or punctuation are not allowed. Also, no advertising names please i.e., political statements, web site urls, etc. Namejacking (taking someone else's name) is not allowed.
But I guess it supposed to be just what bothers you? In the wild west of multi-player game rooms.
Edit: Ohh, I did find an unban request from 3 years ago for chat/radio spam. By the time the offender posted, it was already lifted (24 hrs).