Penalties simply need to reduced, especially for profanity that's not directing at another poster. Muting Mechaman and banning Barfbag were issues, but the system has benefits when real trolls arrive.
Does it? Anytime there's been serious disturbances, they're just kind of dealt with on sight, there's really no by-the-book dealing with certain people, which is the issue I have with this system. It seems to do nothing except get in the way of decent posters, and anytime it's directed at actual serious issues, infraction points are just inflated to reach whatever target the moderator wants to reach. It's nearly impossible to get banned by intended use of the infraction system unless you're deliberately trying to, and if a poster is that much of a nuisance they're usually eliminated before they get that far.
I have no real problem with most of the moderation on this site, but the system itself is a total farce. Despite protests to the contrary from some moderators, aside from "don't use profanity" and "don't post pornography" all the other rules and punishments are just made up as people go along. The main problem I have with it all is that people pretend most moderator actions are based on some sort of "system" when they're clearly not.