Chat censorship does not effectively censor hateful or mean speech, and tends to censor things that are not mean-spirited at all.
There are easy ways to circumvent the censorship (e.g., replacing “i” with “!”, and other methods) if you wish to say something mean, so it is not effective.
Currently, chat censorship only serves as an inconvenience, also to those who are not saying mean-spirited things.
Therefore: Make chat censorship far less aggressive. For actual bad behavior, rely on the report system, and allow players to mute each other in the chat. Parental controls could also be implemented.