If you break forum rules then you should get warned (red tag) it does not matter if you have 1000 merits or you are a legendary member or even admin. Rules are rules. However, a defaulter should have enough rights to explain his reasons. If the reasons are not satisfactory then don't remove the red.

If someone do an on forum bad act (breaking rules) which is confirmed, then tag them but it's too much when you tag someone because you think this could lead to that. The experience you have had and the experience others have are not same besides just because you are a DT does not mean that you are a mind reader.

A confirmed rule breaker should defiantly get red tag, does not matter if he has 1000 merits and even a Legend. And in it I do not see any spoiling on the forum fame.