I think instead of a permasquelch. How about a 1 week squelch? One day a week, taking the course of 1-2 minute(s) for most players to type about 10 names.
The reason why HiTech didn't want a permasquelch was because if the culprit left (example, ManAwar) and someone else totally different and new joined who took his name, then he would be forced to bear with the punishment and hate that the other player under the same name earned. But more importantly, wouldn't be heard because he would be 'permasquelched' before his case could be heard.