Of course it is Jason, bending and breaking rules is a massive part of racing, it's been a part of the sport since racing began. However, if you get caught, you get punished, which is only fair, but even if it's blatant and you boast about it on the forums, iRacing do nothing.
This seems to be an attempt to appease their customers by appearing to be doing something, instead of doing nothing at all. Swearing just seems to be a strange thing to target.
But anyway, I accept that some people are offended by swearing, and there are kids on the service (even though there shouldn't be, but that's a whole other argument), so I can understand why they want to enforce it a little.
I still don't understand the attitude towards swearing in America. Maybe it's because I've lived in Scotland my whole life, but swearing is a complete non-issue. I just don't understand why some people get so worked up and offended about a word which someone has told them they should be offended about. Why? It's just a word.