No, I am not confused. You used an ALT Account to act in a way which you had hoped would not affect your main, you admitted this in your Appeal. I spoke with you both as a Civilian IC'ly and also on my staff character, however, you chose to continue this behaviour afterward.
Running around on a character named 'Rampage', screaming slurs on innumerable different occasions is not 'fun'. Given your behaviour and multiple verbal warnings, a gag was not sufficient. Furthermore, you are Perma'd for breach of GR11, not GR1.