The only problem is where do we put it?
If it's about just making the ban list public then leave it in the admin area. Why move it somewhere else? Once people gets their scrapbookers powers they should be also able to see it just like the rest of the area.
Making a new section for a ban list is stupid, even if the whole idea is to show "transparency". To which, by the way, I also think it's… dumb, but I don't really want to argue that point. We all know that internet bans are "srs business".
Anyways those are my two cents. I don't mind either way, it won't be as funny as SA's ban list but it could do the work.
You could also put a red X over the users profile pic.
Or change the profile pic to a red X or a "?" symbol. Code-wise, I thiiiiiiiiink it's far more easier to do that than putting a red X over the pic.