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the difference is that when you're banned you can just go do something else whereas if you're jailed for acting up, and it's not timed in realtime but gametime, you are forced to sit there and suffer for the acts of stupidity that got you jailed.
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Going by realtime is more of a fair punishment. I always thought that having a jail was stupid. People would go there and fool around, not to mention how odd it seems for an app to force you to keep it open for hours on end in order to use it again. Banning prohibits people from playing, while still being a fair alternative to jail.