But this whole "banning/kicking the innocent" is really wrecker related and as a such it happens really rarely. The good use of this is that if the person (who is guilty of something) has jumped to pits right after causing some massacre it won't go into that guessing game as it usually does. Now we could know where the possible guilty person is and specially the moderators could easily check this one's driving.
I personally feel that you are overly exaggarating the whole "innocent getting kicked/banned" thing . As to the yellow flag issue, it's pretty useless atm. You just can't trust it. Having those yellow dots on the map wouldn't really make any change as people don't even look at the map that much. I only check the map if there is someone in front or behind me and I'm not sure if he is on same lap. +1 to the (much wanted) feature of seeing if somebody is on same lap on or not.