Ugh. This and the XBL banning is one of my biggest gripes with online gaming policies and online moderation. You can NOT justly ban/edit/moderate on what people find offensive because what is offensive is both highly relative and subjective. What you SHOULD moderate by is what is harmful or dangerous. Danger/harm protection is much more solid in grounding than someone piping up and being offended. Hell, I am offended by the poorly thought out policy.
I can't comment in regards to XBL, but Blizzard has always been pretty sketchy on what they deem "offensive". Like you said, it's a totally subjective concept, so more often than not it's at the GM's discretion whether or not disciplinary action should be taken.
Can't really blame 'em for trying to protect their money, though.
Would harmful/dangerous include racist phrases and/or words? Like a guild or XBL tag named "I Hate Spooks"
Related: I also got a week ban for renaming my character Curbstomp. I thought it was a sweet name for a PvP rogue, I honestly wasn't thinking about the racial connotations
