Does it? I personally think it should solely mean "this person is a public figure and is who they claim to be".

If they believe the person has violated their policies, then they should just ban them. If they don't want them having a blue checkmark when the ban expires, then they should ban them for life. Leaving them in this weird limbo without a blue checkmark turns it into something more like "Twitter's badge of approval", and feels petty and vaguely dystopian. I think it should just be "Twitter's badge of this-account-is-not-an-impersonator".

As another poster said, if they truly insist on this badge of approval, then they should have two checkmarks: one for verification, and one for "we consider this person a respectable, trustworthy, and upstanding member of the Twitter community" or whatever.