Yeah, but you also don't necessarily allow it to continue to broadcast while exhibiting errant behaviour. Your interpretation of this as a "punishment" of the machine isn't necessarily correct, nor the only perspective that's ultimately important here.
As far as Twitch is concerned, there's a channel that's breaking TOS, repeatedly. They're not "punishing" the owner of that channel, they're just enforcing the TOS, something the channel owner agreed to when creating their channel.