If you go with community banning, I'd totally automate the approval process. Not only could it potentially save time, but the results would be much more interesting. Yes it could backfire but that's one of the joys of game development.
As a gamer myself, the main thing I look for is being able to mute everyone before they get a chance to say anything. Can't think of any game I've played online in the last 5 years where I didn't do that, except a few where it wasn't possible - and that was a sad time.