Main problem by Facebook being able to perform what I'd call "Capital Punishment" on users by completely removing access to their hardware and software is that we're not getting same laws like in the real world. You may get severely punished for something you really didn't do - and you can complain to no one, or might be given a sentence based on some (young, uneducated, low-paid) supporter's quick evaluation of "evidence" (or the bots). Facebook (or bots) will now be in charge of all the power of police, courts and corrections.
I'm a big fan of Dredd in movies and comic books, but getting a life sentence "that cannot be reversed" without any kind of fair trial is not a development I appreciate in the real world (or inside VR worlds).