This was one of my concerns with the rules broadness as well. Things you and those close to you know to be jokes, or beliefs you may hold, or etc can be used as a method of punishment if someone who is not even aware of the context or part of it hears it. If the person who reports has a certain belief or bent, or the GM does, then people can be banned or suspended over things that they really honestly shouldnt be. Thats a core issue with the "emotional distress/offense" reasoning: If someone finds it offensive, context be damned.