This is the most laughable post I've seen in a while.
This topic is more about the constant TKing than the insults. And contrary to your last sentence we do ban for excessive intentional TKing.
I think you understood him wrong Killa, he meant admins do not have anything to do with the insulting part, in which he is right.
For the excessive intentional teamkilling, if it is obviously intentional with the only reason the be toxic, than yes, you will get a temporary ban for griefing.
Maybe Killa said it in a way that looked inconsistent for you. But it is very simple. As soon as we see somebody is griefing, we will give him a warning (in the form of a 1-week ban) . It's the same what happens when people are griefing in LoL. If people don't learn from the warnings, punishment will get more severe.
For chat abuse etc, we will not do anything at this point. Server admins can decide for themselves if they want to ban for it. In this sense I also agree with Ares.