This ban doesn't punish the machine; it doesn't care whether or not it's banned from Twitch. It does two things:

* Makes sure the people controlling the machine are incentivized to correct it (not that I think they needed it, but what I think is irrelevant)

* Ensures that content that Twitch management doesn't want on their platform, and which is in violation of their TOS, is removed immediately, regardless of the thoughts/actions of the people controlling the machine.

Yeah, but you also don't necessarily allow it to continue to broadcast while exhibiting errant behaviour. Your interpretation of this as a "punishment" of the machine isn't necessarily correct, nor the only perspective that's ultimately important here.

As far as Twitch is concerned, there's a channel that's breaking TOS, repeatedly. They're not "punishing" the owner of that channel, they're just enforcing the TOS, something the channel owner agreed to when creating their channel.

OpenAI (which powers this Seinfeld generator) is putting significant resources into preventing it from creating unsafe and antisocial material. Until that is prefected, outside entities like Twitch can use traditional moderation tools, such as the 14 day ban issued in this case.