Yes, I believe these accounts should be permanently suspended if they are found to have violated X’s rules. I am particularly concerned about accounts promoting neo-Nazi ideology while using imagery associated with Midori from Blue Archive. Such use may also raise intellectual property concerns and should be reviewed by the rights holder.
The Japanese guy who organized a "Neo-Nazi" meet-up on Halloween in Tokyo got his account suspended for violating X's rules against hate.
He's an internet personality active in a subculture centered on memes and remixes involving YouTuber Hikakin (who is not a Nazi).