Further tangent, I'm not big on digital ID and stuff overall but then I'll play an online game with cheaters and wonder if it's not the solution to things like this. Lifetime cross platform online game bans tied to your real life ID which you need to sign into this new all encompassing anticheat.
I don't think that anything should be as harsh ever but yes, having a reputation that goes everywhere with you is how we deal with problematic people in real life. That's how we stay civil without AI systems constantly scan us or some type of police constantly watching. Also, we tend to tolerate, forgive and eventually forget when someones behavior improves, so... Maybe actually having a continuous persona can help with the nihilistic tendencies too?
False positives aren't exactly rare. Cheaters trolled PunkBuster's memory scans by sending offending payloads matching blacklisted signatures over popular IRC channels, less recently they exploited an RCE vulnerability to deploy cheats to other players computers, mid-game. AMD released drivers hooking themselves into games processes, triggering detections. And there's a lot of less obvious problems with this approach.