Please adjust your punishment system to reflect the rating and age group of the players.
Currently your punishment system is a great system for children in kinder garden or younger. But it does not accurately punish players who expect the game to be of TEEN content.
For example: You believe that is is okay to make sexually suggestive jokes like "Sorry boys, I keep the fuzzy cuffs at home,” or “Is that a rocket in your pocket?" but at the same time you consider it "toxic" and therefore ban worthy to call someone "bad" or a "noob".
This clearly makes no sense what so ever to any rational person who understands simple fairness. It is hypocritical to fill the game with "toxic" content and then punish players for "toxic" behavior.
You need to punish people for what they do, rather than what they say:
Verbal abuse has an easy solution - the mute button. But refusing to help your allies in a team game results in that game being destroyed - that has no solution.
Therefore it is those type of game destroying actions that should be punished, not what is typed in the chat box. There is no mute button that can force an ally to stop farming minions during a team fight.
The current punishment is basically going after the symptom, rather than the cause. If you remove the cause, most of the symptom would disappear on their own. By punishing people for destroying games, you would remove the feeling of helplessness players feel when their allies refuse to help, and therefore those players would not feel desperate enough to say mean things in chat.