The SMA page says this:
On any island explicitly marked as one we want to have a serious medieval atmosphere (currently: Dwilight), the above guidelines will be enforced by the ruler of each realm, which means anyone breaking them repeatedly or so blatantly that it hurts the atmosphere will find his character deported to some other random island.
If you believe that someone is failing to follow the guidelines, then you should report them to your ruler, who will take any necessary action. If you believe that the ruler is failing to uphold the guidelines, then you can report him to the Titans if necessary.
An OOC ban would not be appropriate, but the rulers are still expected to enforce the guidelines without recourse to the Magistrates every time. Asking characters with silly names to leave, and deporting/banning them if they won't, is appropriate.