I do think the penalty is harsh...then again, continuing the same behavior that got you strikes in the first place.
I think it starts with a day or two or three ban, then a little longer maybe a week? And finally they take your head.
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Given how some people got away with some behaviour, I guess the GM gives you plenty of time to redeem yourself before acting against your account status. Whoever got a warning he clearly had deserved it, likely for a reason that is just the top of a pile of things he already did.
The GMs will yank you into their little time-out room and have a chat with you. They only issue temp bans on the first offense if it's something really serious, though.
I know from personal experience after I made the dumb mistake of deciding to test someone's claim that you can mess up a bot by trading with it on a bot that was being multiboxed by someone who wasn't AFK. Yes, it did mess the bot up for a time, but it also ticked off the guy who owned it and had to fix it.
Wow.
I swear all the time in the game, even the f-bomb. I have never been called out or even told to turn it down, so I guess I'm simply fortunate in the fact that I've yet to meet someone who takes offense to it, or just offense to me, to use it against me. I've never spoken to a GM without contacting them first, either, so I must be doing good, otherwise.
So, it seems we should speak with the "work filter" on. Welp.
If a player is unable to prevent themself from spewing profanities and acting in a racist and harassing manner often enough to get repeatedly reported by other players and causing repeated GM actions, I would guess most other players would wish that player would "walk on eggshells" and maybe even decide not to buy any future expansions...