I wouldn't say it is too much of a stretch to believe that Palurgee didn't realize he was breaking the rules. Palurgee got banned more on principal rather than malicious intent, if his story checked out he really didn't do anything that gave himself an advantage against other strategus users. For that reason I think he should be unbanned, atleast on one account, to prevent it from accidentally happening in the future.
Palurgee is a good citizen in the cRPG community, he deserves justice.