(This is a joke thread; NSFW language; rated E for Everyone) Dislcaimer: despite the language, I'm not a homophobe, pay attention to the context and learn what hyperbole is before you say something stupid.
I propose a new criteria for player reporting, called "being a faggot". If you're banned for faggotry, your account is deleted, money spent is not refunded, and you are IP banned. It's similar to trolling, in that the person being reported is being reported for being a complete and total fuckstick, but unlike trolls, fags don't ever stop being fags, and will continue to do faggy things.
If it's not feasible to implement this idea, then I propose an alternative. If someone receives enough reports for being a fag, someone is sent to break into their house and steal something of value to the faggot in question. If said break-in doesn't dissuade his faggoty antics, a ghost is released into the fag's house and haunts him or her, eventually driving him insane and forcing him or her to kill him/herself to be rid of the ghost. It's a serious punishment, I know (perhaps even over the line), but in my defense, these people are serious pieces of shit, and they annoy many good, hard working people who just want to come home and have fun on the game they like to play, who don't want to sit there and be stuck with a huge fag who does nothing but talk shit, annoy, feed, completely ignore, and be a complete bitch to them.
In all seriousness though, I do think the punishments for trolling and harrassment need to be more severe. If someone gets banned too many times for either of these, just straight-up IP ban them.