Punishments are really weak then they get intense out of nowhere
Honestly, this whole instant feedback system is screwed. Anyone, and I mean almost ANYONE who is toxic will dismiss a 10-30 game chat ban no problem. They'll think they've reformed because they don't get any of those popups saying someones reported them. Suddenly, you're banned for 14 days. This is not a smooth escalation and saying that someone has been warned isn't a very valid excuse for just throwing a random ban with only very gradual punishment progression. I think something more like 20 game chat restrict (1) 3 day chat removal and replaced with basic commands like in tf2 (2) 3 day ban (3) 2 week ban (4) perma ban (5)
I don't like permabans either, but if they had to stay that'd probably be best. Also, those warning messages saying you need to tone it down because you've been reported are extremely key in making sure someone realizes what they're doing wrong. Those chat restricts do nothing and the random bans will only worsen someones behavior.