Tyler's stream just embraces and endorses toxicity.
Tyler1 is entertaining to a point but I understand where you're coming from. I happened to watch his stream back when the Indefinite Ban post came out (He read it on stream quite literally 21 minutes after it happened). While I feel disheartened by the loss of his privilege to play League, one read-over of his Twitch says a lot.
Why are you so toxic?
+ Kids are bad and need to know they're bad.
This is quite literally toxicity at its finest. What makes this worse is what he's done on stream (EVEN WITH PHREAK IN HIS LOBBY AND ROBERTXLEE IN HIS GAME). He trolls Phreak by banning Brand and when his OTP Draven pick gets taken, he picks Teemo to troll. He also does this to get his way in-game if he doesn't get bot lane. To add to this, when RobertXLee takes blue buff as a Corki Mid, Tyler1 types in chat:
XXXXXXXXXX: sigh
/all XXXXXXXXXX: elise
/all XXXXXXXXXX: build mejais
He then proceeded to run it down mid and feed, which lost them a won game. All because poor wittle Dwaven couldn't get a blue buff...
I know I'm no angel either, as I have definitely flamed people and used some horrid racial slurs in the past. Now when I do mention to people when their own mistakes screw me over in a lane, I try and make it explicitly clear that my reason for doing so is to make them aware of how their decisions affect others on their team and to help them improve. All Tyler1 does is flame people. I don't think he is incapable of improvement but I don't think Riot is wrong to ban him. I think in the future Riot might give him a chance, but not if he keeps trash-talking people on his stream and using Riot's game on his stream without playing it. All it is doing is bending the ruling to his benefit, which is manipulation of the rules at its finest. I'm surprised Twitch hasn't banned him yet for what he does, he is horrid on his stream when he uses League's client to "coach" people on how to play Draven.
Sorry for my rant but the TL;DR of it is I agree with your statement.