That needs to stop. Not one of the accounts I've come across has done anything outside of the guidelines and often are contributing substantive comments.
If someone's turned over a new leaf and hasn't committed any infractions on this new account, then we have to ask ourselves: is putting a permanent stain on their IP going too far? It's communicating that you're so odious we think you'll never change and those in your household will also be the same.
Weird. I also have 'showdead' set to on, and I would say that for 80% of the banned accounts I see, it is immediately obvious why they're banned, because it's right there in the dead comment.
Another 10% are 'huh, this is an insightful substantive comment, why is this person banned?', and I usually find it a couple of pages deep in their comment history; usually something along the lines of someone who writes substantively on a number of issues but has one that they just spew insane malicious vitriol about every time it comes up.
And finally, yeah, there's 10% or so that seem to have been banned for no discernible reason and don't even seem to be aware that they're banned.