That sounds ok to me, but, I think the user should be pointed to relevant policies on the first warning also. I don't like the view source part though, sounds a little evil. I don't feel it would do much other then discourage the person from editing. er even make them think it's a bug in the software and go report it.
Seconded. Actually I think the whole idea of automatically resetting the ban if the user "attempts" to edit is silly. "Ooh! You thought you were going to be clever and edit even though we've told you you can't? Let's see who has the last laugh, sucker!"
It reminds me of the time I got accused of having a sockpuppet on a mailing list because I changed the name in the "From" field but used the same e-mail address. ("You clever hacker! You thought you'd fool us by changing your name but I can see that the e-mail address is the same!")
Regards, Haukur