Nobody seems to be noting that I un banned everyone afterward?
Robbing a bank is still bad even if you return with all the money.
And you initially perma-banned all those people.
If I get perma-banned from a server then I don't usually try to get back on the server, because it's permanent and I know I can't.
I don't go back any time later to check that I've been unbanned either.
I would imagine this is the case for many people.
If you permaban them, then they're not going to return ever even if un-banned, unless you went and hunted them all down and told them they've been unbanned.
And if you make someone feel like they can no longer return to the server, then you've ruined that server for them.