You will not solve a single "problem" by banning. All these problems are communication problems or these involved parties are simply psycho cases needing our support.
That pleasant sentiment has been handily disproven here. Some people just refuse or aren't capable of playing well with others, and simply removing them from the mix has enabled us to concentrate on our goal of making an encyclopedia--if we have to take time out to support or reform every vandal, we'd never get anything else accomplished. Blocks have worked very well, and they'll continue to be a useful part of our process.
The only question is in the details: who can block whom, when, how. Generally the wiki way is give liberal permissions to lots of people, and fix any screw-ups after the fact if needed. I don't see any reason why this process should be any different.