I like the current approach. The policy, as I've seen it work, is to yank offensive posts and warn the offenders. Either they shape up, in which case the problem is solved, or they continue to offend, in which case the offenders are thrown off (which also solves the problem). Poster Robert-J got put in the cooler on this thread after very patient handling by Admin Moderator.
The only missing link in the solution chain is having enough Freepers willing to hit the abuse button when they see such crap.