At least some of the banned deserve a second chance. Those who were total monsters will probably be quickly re-banned. Others have found their own echo chambers elsewhere and won't even bother coming back.
Which is basically what you described and therefore is already how it works.
"All four accounts had been singled out for criticism by Andy Ngo, a far-right writer whose conspiratorial, error-riddled reporting on left-wing protests and social movements fuels the mass delusion that a handful of small antifascist groups are part of an imaginary shadow army called “antifa.” In a public exchange on Twitter on Friday, Musk invited Ngo to report “Antifa accounts” that should be suspended directly to him."
https://theintercept.com/2022/11/29/elon-musk-twitter-andy-n...
https://theintercept.com/2022/11/29/elon-musk-twitter-andy-n...
With a propaganda weapon as powerful as Twitter, it's probably better for everybody if it's destroyed, rather than continues to be used/abused to escalate political divisions by either side of the great divide. And that seems to be the way things are going.
It should never have been taken so seriously to begin with.
At first I hoped Musk would see the nightmare, give up, just pull the plug, and go home. I think that's out though, now I hope it collapses under its own weight. Hope dies last.
[0]: https://www.businessinsider.com/twitter-algorithm-crackdown-...