There should absolutely be more options in disciplining people. Sometimes you need to go through the entire range.
Years ago when I staffed on Tyme there was this one Asha'man player (who were basically male sorcerers) who was getting quite out of line. He'd use invisibility to stalk people, especially the ladies, threaten them OOC if they ventured anywhere outside of their cities and 'he caught them' and using "IC consequences" as a very thin layer on top of what amounted to bullying.
It was actually harmful to the game on a macro scale, not just from a creeping point of view, and I tried to step in. I tried to reason with the guy, I adjusted the power of some of their spells (I still remember the cries) to balance them a little better, I jumped on their guild channel to ask them to tone it down... nothing worked. I still remember his ultimatum at the end of all that, too, all those years later. "I'll burn down this place if I want to". He seemed to think the numbers on the sheet and the time he played there were enough.
Well, I banned him instead.
Some people simply see gaming as a pissing contest or means to a much different end than what the game itself is about. I find that those need to be removed - but they are a very small minority. Most folks just want to have fun and just happen to step out of line a bit here or there.