I like the chatterbox, even if it is used unwisely by some people (I haven't witnessed these indicidents myself, btw). Even as I type, there is a good discussion where VulKen, tilly, and ar0n are getting some good Perl tutoring in. I'd hate to see that kind of interaction go away.
Are the problems mostly being caused by neophytes? Perhaps, rather than a ban, we should allow chat only for Level 2 or 3 monks and above...? By L2 or L3, a monk SHOULD understand the community we have built here enough to know what is appropriate and what isn't. It would also prevent a person whose account has been "banned" or killed from immediately creating a new one and continuing their verbal jihad.
However, I realize that some people think the XP system is flawed or easily-abusable, so perhaps tying these two foxes together by the tail is making for an even worse problem than we have already.