[Noxid]

Passage papers already are considered IC at least from what I've been told by some people, the guards can ICly check your papers for your name (this is just hear say though I could be wrong.)

I'd say a complete ban from the city would be too much yes. The people that fall under this description would be "encouraged" to move on inside somewhere (playing housing) or to leave city unless properly covered. The mages guild would be a logical place for these people to enter the city since I expect the nerds in there don't care much about how a person looks.