As an ultimate punishment, they sbould be able to post in threads, but not create their own. However, nobody else can see their posts, meaning the banned person will just think everybody ignores him.
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I think that it would actually be fairly easy to figure out if you have been put under such a ban. One could just create a new clean account and search through the other account's post history to verify. If the goal of this is to curb the amount of people creating alts, for the purpose of being a jerk to others, then I doubt it would do that effectively. A better method, in my opinion, would be creating a custom filter for each user to determine what content they want to see or ignore. The incentive for being a jerk would be nonexistent if a user new that they weren't going to get any attention for it. I'm really hoping that the new build will include something like this.