I think you guys are going about this all wrong.
Let me explain:
When you "wall-hack" or "modify textures" etc., you are obviously doing it to gain an advantage in the server.
So therefore, you are banned from the server.
What should be done about verbal abuse? This:
Mutes.
Think about it. When you verbally abuse someone, you almost always aim to put them or something about them down. Therefore trying to gain an advantage of power over them. So getting muted for a week would probably fix a person's wagon pretty good. And of course, punishment always grows. (Warnings are good too for the first time offenders)
Another option:
A "stealth" swear filter. Once you have said something along the lines of 2-3 inappropriate words in 1-2 minutes, you get temp-muted for 5 minutes. Would work wonders in pubs.
Thanks for listening to my thoughts,
Brock.