"I just want the “bad” apples to have their fun in a different lobby more suited to their level of social niceties."
We don't have the player base for this.
There have been months in a row were the lobby I prefer to play in higher/to mid tier rotato did not happen in my time zone. The people I had on my mute/avoid list would be unable to play the lobby, and it would cause the lobby to die, and back then I advocated for them to be able to play. I am doing that again now. The issue with player count is it hard to get a sense of who is missing and why.[ The prior context was abusing the boss system to stealth ban people from a lobby without notifying anyone in the lobby, or the player who was being stealth banned.]
Also one of the current issues is that noob lobbies have proliferated to the point at which in many time zones if you are above 25 os you are locked out of playing in except maybe 3 lobbies tops.
Overall this moderation action is kind of like mandatory minimum sentencing guidelines in the US, or three strikes laws. In that case if your 3rd crime is stealing a loaf of bread you could end up with 20 years of jail time. It removes agency from the Judge to make the punishment fit the crime, and I think this would do the same.
If the proposal is to have some time of probational period after a ban, then sure that makes sense, but still requires some careful craftsmanship to ensure a just application that isn't biased, or very time consuming for the moderation team.
TL;DR, Oddly when you think about banning or removing people from the player pool in some sense punishes the people who are not banned by removing their ability to play 8v8s, and given that more care should be given to not causing the greater community harm.