Well the other option is a perma-ban for racism.
It isn't racism. It's a word which is offensive to some people, like the words ****, cracker, and mankind.
No, it's definitely racism, but banning over such a thing is just dumb.
No, wait, I just re-read that. You said perma-ban. Seriously, what the ****. I could see a 1 or 2 day ban with repeated use of such slang, but that's flat out stupid. I can't say I particularly like the people in question, but Dilmah hasn't ever done anything wrong, and as for Iamzack... well, good luck changing that.

By the way, monkey me for this if you like Kara. *shrug*