New Punishment System Suggestion
Players deemed "toxic" will be forced to play their games, whatever mode aside from customs, with other players deemed "toxic" exclusively until they display proper conduct for a certain amount of games/time.
This would allow positive players to have only other currently positive players on either team, and I also think being one of these positive players should be a sub-requirement to play ranked. This would put people playing ranked a bit more at ease, and in a better position to do well, as well as stay positive/polite. On the flip it would also provide incentive for "toxic" players to behave properly for their required penance, so they can play ranked, as well as play with other positive players again.
This would reduce the amount of trolls/toxic players that the average positive player might encounter in their games. It will also give toxic players a chance to see how negative impact can come from everyone being toxic, and may give a new point of view. As well as avoid having to just ban people. Unless of course they prove to be unbearable, even among their "toxic peers".
Edit: I know a similar concept, Prisoners Island, was already turned down, but this is not exactly that, and if Riot claims the main reason was lack of chance/likeliness to reform, and they say reform is their #1 priority/hope, yet there is nothing in place to help a player reform, or allow them to even, you just get banned, your only chance is to somehow never have a single occasion in which you do something wrong ever again after your warning, or you will be banned, that's not helping anyone reform.