Banning new Steam IDs on banned IPs seems too strict to me. Some ISP use CG-NAT or rotate IPs, meaning a single bad actor could harm many innocent players.
Yeah. IPs are NOT identifiers. At best they are a session ID. Using IPs to ban players on the basis that they've been used by a cheater before seems extremely unfair and probably even an opportunity for denial-of-service.
I'd agree if it was being used to ban players across many servers, but a single community server is not that big a deal to be banned from. And they seem to have had an appeals process.