[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.

Passage papers are considered IC yes and your not wrong with guards checking them, that's 100% what they do if they need to. Another thing I doubt any of the NPCs care what you look like and I do agree that a complete ban from the city is a bit much, the best I can think of exiling the person from the empire for sometime but that wouldn't exactly be down to us.

Again I remind you, SL2's setting isn't some modern liberal society. Just because most players don't react with disgust does not mean the average citizen (the NPCs that aren't represented ingame) is going to consider liches a misunderstood minority that is suffering unjust oppression based on their appearance. Also the final point you made is a bit of a contradiction. Banning from the city is too much but exiling from the empire is something you can do?