It started as a place for me to talk to people I've taken off the boards. When jailed, as marked by their profile, they can only post in the Jail and they have 3 posts/day. Can't post anywhere else or send private messages, etc.
It's kind of gained it's own following and it can be pretty entertaining sometimes.
Sometimes there is rehab, other times just mockery, others just pure entertainment value then termination. It can be a unique concept and at times, it works. Instead of just terminating/suspending with little/no explanation, I offer everybody the chance to appeal my decision or offer me a deal if they admit they goofed. And even if you do get nailed, at least you still get to post, you aren't totally muzzled.
Either way, your comment about the majority of the folks that are jailed is spot on.