Why does Riot issue the punishments it does?

A certain account (not this one) that I know of was created in May 2015. Since then, It has been chat restricted 5 times and banned 3 times for 14 days on each occasion. I'm not going to contest the fact that harsh things may have been said in-game, but I don't really understand what Riot's goal is in issuing borderline meaningless punishments like chat restrictions and 14 days of no playing. They have stated in many places that their goal is reform and I believe that is what they want, but let me just give you a lesson in life:

You are never going to change someone's personality and/or attitude by taking away their chat privileges for a few games in an online free-to-play video game. They essentially use the stick to "reform" you by scaring you that you might lose your account instead of the carrot which will be discussed below.

Same thing with the 14 day ban, it's not that long and a player can either go outside or just play another video game for 2 weeks.

Moreover I also want to stress that I'm NOT advocating more perma-bans (unless there are illegal things such as fraud, real life threats, or things of that nature happening) because it doesn't matter how many times some dude called another dude a ****** or how many times he trolled or whatever, taking away his account and all the hard work/money he put into it is just a plain old **** move and it's not serving justice to anyone.

I'm sure you all know of that infamous alpha streamer who wears tank-tops. I'm not promoting him or justifying his behavior, I just want to point out that he was universally banned and he still plays the game, still makes League of Legends content on a regular basis, still has a very large fan base, and his attitude has not changed an ounce. I would like to argue that everyone player who is punished in some way by Riot changes just as much as he did because again:

Why would anyone go soul-searching and change their entire life outlook just because they got a ban on a video game?

Since obviously Riot isn't going to truly reform anyone, the best they can do is keep them from hurting others. On to some proposed solutions I thought of in 3 minutes:

IMO the worst punishment, which should replace perma-bans (except in the cases I mentioned before), should be a ranked ban for the remainder of the season or any other amount of time. Possibly include draft mode ban as well. Other punishments could include loss of LP, loss of IP gains for a time, and obviously the loss of hextech crafting for a time. Again just a few ideas I thought of on the spot, I'm sure a group of paid professionals can do better, although thus far they obviously haven't.

I just to visit the "carrot" approach briefly, which has been proven by psychologists to be more effective than the punishment approach. Nobody is gonna change their life from a video game but as what the community would call a "toxic" player myself, I definitely believe that small incentives would be much better at making me less tempted to flame.

This post will probably get downvoted a lot because nobody on the forums has any love for people like me, but I just had to get this off of my chest.