Every time I got banned I was being attacked by toxic players as well , the whole concept of who gets to report first is ridiculous.
You were banned for how you responded, not for being attacked. You could have muted them and moved on with your day, or you could have replied to them in a civilized manner, but you decided to drop to their level and you both got what you deserved for that.
It has nothing to do with the number of reports or who reports first, as the chat gets looked at by an automated system.
Why doesn't Riot remove my chat
They tried that before, with infinitely stacking chat restrictions. Those players still couldn't behave themselves, and it's said that many of them started trolling when frustrated and they couldn't flame.
Basically blame those who came before you for ruining your chance at such a system.
I understand I broke the rules but having my cousin play my account and saying non racist , non homophobic things is worth perma ban?
Anything that's worthy of a 10 game chat restriction is worthy of a permaban if you keep it up long enough. I'm assuming it was for chat that your account got banned because of how often you referenced the idea of removing chat.
this isn't how a loyal customer of 4 years should be treated. [...] All my money is being stolen here , the whole concept of being able to lock someone out of their account that they have invested tons of money in is already ridiculous
Care to show me where Riot hacked into your bank account and stole from you?
Riot promised you RP in exchange for money, but made it perfectly clear in the Terms of Service you agreed to every single patch for 4 years straight that you did not own the content. They also told you what would result in account termination.
Riot delivered the RP every single time, holding up their end of the agreement. It's you who broke the agreement.