You do know that they actually permanently remove content on here sometimes, right? I love reading banned users posts! It is not the only tier of moderation at play though.
No, we don't. We only delete things outright when the author asks us to (and typically, when it didn't get any replies—otherwise we try redacting, reassigning to a different username, and/or other things).
I stand corrected! For whatever reason I remember seeing a lot of blanked-out flagged posts when kiwifarms went down, but I could be remembering things wrong.
Showdead shows algorithmically shadowbanned accounts and domains and [most] flagged comments. It doesn't let accounts that Dang has withdrawn posting privileges from continue to post.
Banned users can still post. Their posts are autokilled.
There have been a handful (fewer than 10) extreme cases over the years where we temporarily blocked someone from posting, but that almost never happens—it's an emergency measure.
For anyone wondering why we allow certain banned accounts to keep posting, even though what they post is so dreadful, the answer is that if we didn't, they would just create a new account and that new account would start off unbanned, which would be a step backwards.