What are your thoughts on this?.
You've thought well on this, but I suggest it should be on the major bans only, and not on the signature bans to avoid stereotyping them even as they try to improve themselves.
The major banned users' profiles may indicate the banning for merits not to be sent to them, it's a waste of time and resources. Aside from that, I don't see any use for that because the banned accounts would be forced to be dormant.
I support your idea from here, its more effective that one can see their ban status right form the profile, this will help us know more well about the forum member we are about to deal with, also, if possible that a banned account should be unable to receive merits, but how do we differentiate an inactive account user from a banned user, when it comes to sending merits, like Satoshi account was not banned but has been inactive for years and members are still sending merits, same applies to other accounts, it is better only a banned account should not receive merits and inactive account can receive merits as usual.