I would ban people plainly offensive, but, as this thread is proving, this is not an easy or clear issue. The matter is subject to own perception.
In my mind, clean language and politeness is something desirable, and is our responsibility to try for it.
Having said that, I don't like anyone but me deciding which line I can or can not cross. I don't like the feel of somebody looking at my way of expressing myself, judging wether It is acceptable or not. I don't like censorship, although I agree that abuses should be cut. I think that anyone who thinks that he actually can judge other's behaviour in terms of "good" and "bad" is just missing the point. I hope I don't ever find myself having to sign some code of morality and good manners written by somebody who, at best, had try to fit his own and particular perception on what acceptable behaviour is.
Finally, talking about my, yours, his own way of perceiving things, language, ofensiveness, etcetera, AH is HT's own. And HT has proved (IMO) to be a sensible character, both on the grounds of technical stuff and (specially) customer care. So I trust he will know (should he ever thinks any action is needed here) how to manage with peoples' actitude within the game. If I find that solution unbearable, I would leave, problably without any noise or complaint (even less threatening that If my own point of view is disregarded, I would leave). But until then, I'll gladly enjoy AH as usual, squelch whoever I find disrespectful, and, above all, have FUN.
Just my $0.02, blah blah blah. (and sorry for long post).
Pepino.