Yes, that's a very reasonable position to take, and I'm leaning the same way. I see the issue as being very similar to the question of whether or not a society should condone killing people: It makes perfect sense to have a general rule that says you can't, but sometimes you have no choice. Pacifism is not the solution here.
The karma system does not solve this problem because a small number of people can have a disproportionate impact simply by voting more. And of course, extremists care more and so are more likely to vote. My post above is now at -3: Is this because the community disapproves? Or is it because 3 bio realists felt threatened by the notion that we should ban literal nazis because it might extend to them as well? I am not at all convinced it's the former.
As previously discussed, on June 6th I received a message from jackk, a Trike Admin. He reported that the user Jiro had asked Trike to carry out an investigation to the retributive downvoting that Jiro had been subjected to. The investigation revealed that the user Eugine_Nier had downvoted over half of Jiro's comments, amounting to hundreds of downvotes.
I asked the community's guidance on dealing with the issue, and while the matter was being discussed, I also reviewed previous discussions about mass downvoting and looked for other people who mentioned being the victims of it. I asked Jack to compile reports on several other users who mentioned having been mass-downvoted, and it turned out that Eugine was also overwhelmingly the biggest downvoter of users David_Gerard, daenarys, falenas108, ialdabaoth, shminux, and Tenoke. As this discussion was going on, it turned out that user Ander had also been targeted by Eugine.
I sent two messages to Eugine, requesting an explanation. I received a response today. Eugine admitted his guilt, expressing the opinion that LW's karma system was failing to carry out its purpose of keeping out weak material and that he was engaged in a "weeding" of users who he did not think displayed sufficient rationality.
Needless to say, it is not the place of individual users to unilaterally decide that someone else should be "weeded" out of the community. The Less Wrong content deletion policy contains this clause:
Although the wording does not explicitly mention downvoting, harassment by downvoting is still harassment. Several users have indicated that they have experienced considerable emotional anguish from the harassment, and have in some cases been discouraged from using Less Wrong at all. This is not a desirable state of affairs, to say the least.
I was originally given my moderator powers on a rather ad-hoc basis, with someone awarding mod privileges to the ten users with the highest karma at the time. The original purpose for that appointment was just to delete spam. Nonetheless, since retributive downvoting has been a clear problem for the community, I asked the community for guidance on dealing with the issue. The rough consensus of the responses seemed to authorize me to deal with the problem as I deemed appropriate.
The fact that Eugine remained quiet about his guilt until directly confronted with the evidence, despite several public discussions of the issue, is indicative of him realizing that he was breaking prevailing social norms. Eugine's actions have worsened the atmosphere of this site, and that atmosphere will remain troubled for as long as he is allowed to remain here.
Therefore, I now announce that Eugine_Nier is permanently banned from posting on LessWrong. This decision is final and will not be changed in response to possible follow-up objections.
Unfortunately, it looks like while a ban prevents posting, it does not actually block a user from casting votes. I have asked jackk to look into the matter and find a way to actually stop the downvoting. Jack indicated earlier on that it would be technically straightforward to apply a negative karma modifier to Eugine's account, and wiping out Eugine's karma balance would prevent him from casting future downvotes. Whatever the easiest solution is, it will be applied as soon as possible.
EDIT 24 July 2014: Banned users are now prohibited from voting.