I have no doubt that this Deathpig character is history. And the reason he will be banned is that the players brought it to the attention of HTC. This is an example of how the community can police itself and become a valuable asset to AH.
I think we should try to understand the moderators. They are players just like us, and extended periods of game play without characters like Deathpig sort of lowers the bar so that the moderators may tend to become more picky about the language they respond to. It's natural and many here would fall into the same trap... "the slippery slope". Trust me, I've had great experience at seeing how this can happen.
Such a job requires very special people who can uniformly apply standards provided to them by the company without being influenced by anger or personal bias. Such a person is hard to find, but even harder is to consistantly apply this standard over time. They need extensive training, practice and review. Those who can't seem to do the job correctly need to be replaced... through no fault of their own... just too human.
This requires a person in charge, and some help in related administrative work. This support and administrative group would ideally be employees of HTC. Unfortunately, HTC likely cannot afford these people and lacks the resources to do it as is.
I've seen all this, from top down, done by volunteer help from select players. The person in charge would report to HTC, but must able to make decisions and direct others independantly. Of course, there were still complaints, but that is likely something that can't be avoided.
This would require the right person, one who is willing to take on a great deal of pressure, and be willing make a very large time commitment, all for grattis and love of game and community.
Does such a person exist here? If so, offer Hitech a hand.