Agreed that it leads down a path that is perilous-- the fact that we engage in self-censorship is indicative of how bad the situation against honest intellectual discourse has become, where even attempting to perform due-diligence can result in reprisal and punitive action.
I believe that brings us full circle.
I advocate not engaging in reprisal, because I acknowledge that I am capable of error.
The person that advocates reprisal, does not make that acknowledgement.
At most, I would suggest engaging the source in the offensive rhetoric with a calm, cool demeanor, and asking them to better explain their use of language or imagery.
In the case of the person with the swastika tattoo, this opens the door for them to tell you all about Jainism-- for instance. Something you would not have been open to, had you responded with reprisal.
Likewise, with the dangers of being permabanned on websites-- Instead of jumping straight to the permaban, discuss the matter with the person in private channels, determine their intent, remind them of the forum rules and why they exist. Should there be an actual problem, proceed with disciplinary measures.
Toady acts in a more or less enlightened fashion. He wants to understand the rationale and motivation behind why people do things, and would prefer not having to use the ban-hammer. He does what he has to, though.
All too often though, people are too quick to reach for weapons, instead of reason.