A) true. Chat can not be neutral. However, those not being completely toxic etc are the people who generally do not have any problems with the punishments. The problem is in the people BEING toxic. They could care less that they are telling someone to uninstall because they are so bad that WHATEVER the heck their brain came up with..... they have a problem that they have no self control and they were caught being an ass and told to knock it off. So instead of taking a deep breath.... what do they do? Go into another game all pissed off! Does not matter if it is players, champions, the map itself, heck people might even blame the frog that jumps off the edge of the map for feeding the enemy team and needs to be reported. The players KNOW they are being toxic because this is a 13+ years of age game. 13+ means you SHOULD have a clue what common sense is, and how to learn from the warnings.
B) banning an account may not be a permanent solution. People will insist on buying accounts to be jerks and they will get account after account banned. Explain to me.... just what gives anyone the right to judge someone else by doing the same exact thing those people are to other players even? What banning the account does is that it makes people need to actually CHOOSE to start over to be an ass. It sucks, but if people would stop getting pissed off at them and mute them, then they would stop getting the laughs. They would move on if they kept getting their accounts banned, them using hundreds of dollars or whatever currency and getting nobody flaming and only reporting them? That would solve the problem. It will never happen, but that is the problem. So yes, we the players are the solution. Not through flaming the trolls and making them laugh their butts off as they are drunk and high off their ass, but by ignoring them.
C) name some games. If you know of the games, name them. Fortnite? I hear that is dieing seeing as i hear it is becoming common for people to report eachother when you disagree with a death and you get your account banned. Overwatch? Could be doing better.... it is a paid game which means it has less traffic, and it is going down hill from what I hear even if it is a good game. All the other First Person Shooter games? They are doing fine because they are new. Call of Duty is an example of that. Halo as well. Sure people are still playing, but their hype dies down fairly quick and then it is a slow decline with occasional bursts.
In short, i think your idea is half thought about, and sounds quite a bit like you just want a reason to reappeal your ban. What you need to do is put more thought into the suggestion, and come up with a more thought out idea.
Just my opinion seeing as its on public forums asking for opinions.