I've been around since the beginning of multiplayer gaming as well. And no, not even by a longshot is it like it is these days with the ubiquitous nature of the internet. People certainly did not act like 13 year old COD kiddies who you see now in almost all multiplayer games. Were there asshats? Of course, there's always asshats in the world. The fact that you've been in communities that are worse does nothing to change the argument. Sorry, it doesn't. Just because the behavior exists it doesn't mean that it should be allowed.
I also have far thicker skin than most people and just because I don't tolerate racist idiots doesn't mean I have thin skin. I'd wager that those who are screaming at the top of their lungs because some of their friends got banned have the thin skin, but whatever, it's no sweat off my brow either way. Ban em, unban em, either way life goes on .