This, exactly! All of these problems and the corrosive affect it is having on the game's community would pretty much sort themselves out if DF covered only your own world. Griefers would quickly find them largely blacklisted from group play as their reputations built and also find themselves locked out of all decent FCs.
Edit: similarly, it would make instituting a kick function easier to do, as abuses of kicks would also open a person up to the downside of developing negative rep.