1. This is how it works in the meantime, if you want to change that and receive notifications, you're free to do that on your own or hire a programmer, who could do that for you. http://www.oxwall.org/market/specialists

Also you can make a suggestion on uservoice: http://oxwall.uservoice.com/forums/13756-ideas-for-oxwall for us to consider implementing it in the default software. 

I'm not sure what you mean by warn panel plugin and it's functionality and how it is related to the editing of profiles and avatars. Please specify. 

Ok, I figured it would be all custom. I am still curious what other solutions people have found on their sites, like maybe I am overlooking a plugin that already exists or something like that, since there are already a couple great moderation tool plugins.

By a warn panel,I mean it would be desirable to have a notepad of sorts to record a user's history so all mods can quickly and easily see from a user's profile if a user has been warned about a behavior before.

So I am curious how other Oxwall users are handling moderation on their sites other than relying on great memory of everything a user might have done. If anyone has advice or suggestions about it, I am all ears.

Not sure about the rest, but as for leaving notes on profiles for all admins to keep track you could try using this: 

http://www.oxwall.org/store/item/1150

Thanks, Phil. Looks like user roles have been added since the last time I looked at that plugin, so it may suit my needs/wishes now.

I will make a usevoice suggestion later when not on mobile and post the link as better member management/moderation tools would be really excellent to have built in for the future. Unfortunately not every internet user is a saint. :P