Has Microsoft gone to far?

I am speaking about Xbox live policy enforcement, I have been reading their forums, the ones in regards to suspensions, only to see that people are being permanently banned for playing a game early. Now by no means should you be able to get away with it, but permanent suspension? that's going to far maybe it should be like if you play the game 2 weeks early, your suspension lasts until 2 weeks after the games release. Many other things are disturbing as well, apart from the obvious reasons, swear words, sexual orientation, religion, scamming and so forth on a profile that do warrant suspensions but there are others that don't quite make sense, one person was band and the response from enforcement team was that he had his real name on his profile, yet xbox live has a place to put your actual name on your bio!
Xbox live should definitely continue to police their product, They provide a good service, and I'm sure that it is not an easy job policing millions of users. Maybe they should change there terms and code of conduct, just a little bit, perhaps with the help of actual user input through surveys or polls. It's good to be politically correct just don't take it to far. Maybe they should also consider giving the individual user more power to block what they don't want to see or hear for themselves.