I get the rage. I get the frustration.... Did you think about what happens when that paying subscriber changes their name and the one that you have "perma-squelched" becomes available for a two week trial?
Some poor SOB is left with cricket sounds because the person using the handle previously was a jerk and/or annoying. Hardly seems fair to them.
I would imagine there is some way to code that but I think the system is the best bang-for-the-buck. Yeah, you may need to squelch players when you log in (or just don't tune to 200) but at least you're not potentially punishing someone for unknowingly using a "bad" pilot ID.
If the behavior is abusive you can always use the "Report Player" option using the roster. 
Sounds like a personal problem.

Silliness aside, if the squelch system we have was an
ACCOUNT BASED SYSTEM, then it wouldn't matter one bit. Right now, squelch someone, they log out/in, clear squelch (unless that has finally changed). Reporting someone over name calling, even if it is all the time, won't do anything. Least this is how it seems.

So yeah, permanent squelch will be nice. They only need to change it to where it is tied to the squelched account so that no matter what name THEY choose, they will still be squelched.