Legal implications with the language used
Perhaps be a little more careful on the language used.......
lets have the "you", "your", as a 3rd person as in "there are" or "account"

If you start calling people "racist", in writing it is actually considered libel in some countries if not true or provable........
ESP... if the plugin is used by a company or group hoster.
The documentation for this plugin adverises that you can use it to remove players that are rascist, that determination is at the discretion of the server owner, I have kicked many players for that reason and do so in regard to the statements they have made, Therefore they are unlikely to take any legal action as they would have to dispute the server logs containing those reasons, Server owners can and will kick players for many reasons and that is totally within their rights , Players dont have the right to play on any server, They are nonpaying guests and if they dont like the rules they can leave,
Is this a problem I'm too european to understand?
5b7d22c4ef71f.jpg pookins
The documentation for this plugin adverises that you can use it to remove players that are rascist, that determination is at the discretion of the server owner, I have kicked many players for that reason and do so in regard to the statements they have made, Therefore they are unlikely to take any legal action as they would have to dispute the server logs containing those reasons, Server owners can and will kick players for many reasons and that is totally within their rights , Players dont have the right to play on any server, They are nonpaying guests and if they dont like the rules they can leave,

I have a strict no racism & no nazis/ on my servers, but  that is NOT the issue.

You seem confused as to what  libel actually is....
This is when you make a potentially false statement about a person, it does not have a condition applied to it.....
Because  according to your "flat earth" interpretation any newspaper that  committed libel , could  avoid problems simply by saying " don't buy  our newspaper" to the person they made the false statements about... sorry it does not work that way.... because of the 3rd parties involved.

How would you feel if you were accused of being racist and that was then propagated into the public domain with no chance of recourse?
What I'm simply saying it that, to avoid any liability to users , just change the "you"  to "account"

let us not forget that simply by setting up a fake server, using the plugin , then "spamming" a fake SteamID, you get that into a public database that is then viewable to ANY person or group in the world... (via the  website)

It is called an "amplification attack" and  has absolutely no relation to "you" personally banning a racist player from your server  because.:
1. you are not reporting that fact to a publicly accessible database, which can then be leveraged to prevent them joining other services.
2. you can call a person a racist  to their face, because the information is then on the screen
3. you  should read up on the data protection act,  which incidentally DOES exist in Europe. and applies becasue you are using an external and publically available database.

I am also completely lost.

Can you give me examples as to where the pronouns are used? And why exactly it's incorrect? 

5e7c5648be6ee.jpg razorfishsl

I have a strict no racism & no nazis/ on my servers, but  that is NOT the issue.

You seem confused as to what  libel actually is....
This is when you make a potentially false statement about a person, it does not have a condition applied to it.....
Because  according to your "flat earth" interpretation any newspaper that  committed libel , could  avoid problems simply by saying " don't buy  our newspaper" to the person they made the false statements about... sorry it does not work that way.... because of the 3rd parties involved.

How would you feel if you were accused of being racist and that was then propagated into the public domain with no chance of recourse?
What I'm simply saying it that, to avoid any liability to users , just change the "you"  to "account"

let us not forget that simply by setting up a fake server, using the plugin , then "spamming" a fake SteamID, you get that into a public database that is then viewable to ANY person or group in the world... (via the  website)

It is called an "amplification attack" and  has absolutely no relation to "you" personally banning a racist player from your server  because.:
1. you are not reporting that fact to a publicly accessible database, which can then be leveraged to prevent them joining other services.
2. you can call a person a racist  to their face, because the information is then on the screen
3. you  should read up on the data protection act,  which incidentally DOES exist in Europe. and applies becasue you are using an external and publically available database.

Just to address the amplification issue.
  1. All players will be able to appeal any ban on any server straight from the website.
  2. All servers will have a authority level based on age, player base, and will lose points based on the "admin abuse" bans, this has been accounted for. 
I am open to change wording, however at this stage it is possible to do so in the lang directory of the server, and change any wording as the server owner sees fit. 

The aim of the plugin is to keep real offenders at bay, and not create a platform that will be littered with fake bans. Fake bans with the incorrect reasons will be blacklisted from using the service. 
Blacklisted by who,, Facepunch has no interest in servers that are modded , They are only interested in servers that break the rules imposed on vanilla and community servers, and none of this crap has anything to do with the actual plugin, IF you dont like it dont use it, and  players who are banned on a server that does not have a website have no one to complain to,
5b7d22c4ef71f.jpg pookins
Blacklisted by who,, Facepunch has no interest in servers that are modded , They are only interested in servers that break the rules imposed on vanilla and community servers, and none of this crap has anything to do with the actual plugin, IF you dont like it dont use it, and  players who are banned on a server that does not have a website have no one to complain to,

Blacklisted from "Server Armour", and appeal on "Server Armour"'s website