Perhaps its a generational thing. I was taught manners and sportsmanship when growing up. If I talked "smack" to my mother at the dinner table then I could expect smack in return -- no talking involved.
You didn't/don't have to like loosing, but you accepted it, if not graciously then at least quietly (yeah, good game...), then you went out and kicked their bellybutton the next time. When you won, you presented that in a gracious manner. I'm far more libertarian than not, but there is a difference between free discourse and abuse, particularly in a shared commercial gaming environment.
Now, it's all about me! Look at me, me, me, me, me, me. It gets tiresome when you're an adult. I have no problem with approved individuals having these "timeout" powers (and if they don't, perhaps they should) as long as the ground rules are clearly established. You pay your $15 a month and so do I. Squelch is great and all, but it quickly becomes a squelch 1 situation which is a drag. If I were participating in a park district sport, and somebody was constantly "talking smack," (or lets drop the "hip" terminology and get real: being a jerk) every time the other team completed a pass or scored, then I would hope the referee would do something about it. This is not a public street corner, a private Quake server or a bunch of millionaire basketball players on TV. This is also a niche area of gaming that appeals more towards a mature crowd. This can be a great community that goes beyond the game itself, and I hope HTC realizes that this "attitude" atmosphere that is becoming more and more apparent can be counterproductive in the long run.
It's funny, I spent a lot of time yesterday on a site with a well moderated bbs. People sharing ideas in a variety of forums with a lot of helpfulness and usefulness. It was refreshing when the moderator would step in and cut off the flames and trolls before they started, keeping the site civil and productive. It would be nice to see more of that here.
Charon