Auto-removing deleted names would be a bad, bad idea. Example:
- You blacklist some jerk.
- He figures out you've got him blacklisted, but he still wants to troll you.
- He deletes his account, then restores it.
- He is now off your blacklist. Whoops!

I see less danger from auto-removing banned names, but I acknowledge that there may be a danger I just don't see.

Regardless, there are two things I'd like SE to do to improve blacklist functionality:
1. Make blacklists easier to "clean" - it's a tedious process, right now, selecting each name one by one, selecting remove, and then confirming that remove. I'd like to be able to, for instance, checkbox a bunch of names at once, and then do ONE remove and confirm.
2. Indicate, somehow, the reason why you blacklisted someone. While I've yet to find an actual player in-game annoying enough that I felt the need to blacklist them, if I ever did that name would be LOST among the sea of RMTs I blacklist. It would be tough to remember which names are people who are actual active players, and not RMT that were most likely banned in less than a day.

I don't think that the SIZE of the Blacklist needs to be changed at all. 200 names is PLENTY - if any player ever reaches 200 names of non-RMT players, that player should probably reevaluate whether they're maybe just a wee bit oversensitive to be playing a social game. XD