I got penalized for my internet connection crapping out.

this is crap to penalize those who are being legitimately cut off by servers and what not i was dumped six times in a row due to a poor connection and each time i got a new suspension

It does indeed stink to lose the ability to play a game when internet cuts off due to an in-game penalty. It's on the developers for how they go about implementing penalties in their games. If you have an issue with how a penalty is passed down. Your best
bet would be to reach out to the specific games developer to see if something can be changed.

They probably don't look for the difference as many rage quitters would just turn off their network and back on to get round it if they only looked at people who quit via the menu system.

It is sad we need these type of temporary banning rules because some people can't just play a game and if they lose, so what. We all then have to lie with the same system sadly.

"I can also just be ousted because Microsoft's network can't tell when I am unable to access the internet or just rage quitting"

And how would Microsoft's network know the difference?

As far as they are concerned you were connected to their network and then you weren't.

Other than giving them access to your routers internal history log showing that you did honestly have a downtime how else could it be done?

Even giving access to the router log, the user could still pull the plug to simulate downtime.

That's what makes this kind of thing so hard.

Oh crap, you have to wait out the time for penalty. I'm sorry, happened to many of us before too!