I too have been around the world and have lived with different cultures on different continents. I'm stunned at the cynicism I'm facing here but as the saying goes, arguing on the internet is like competing in the special olympics. I'm not the enemy here yet I am being painted as one with each additional post.
There is this cry going out for Microsoft to step in and do something. All I'm saying is that they are doing something. Do a search about banning and you'll see that people are being banned daily for multiple reasons, thanks to the system that is in place whereby users are able to report offensive behaviour when it happens. I've had people on my friends list banned for curse words in their bio. A user on my friends list was asked to change their name because it was considered offensive. Heck, a friend of mine with the last name of Beane, couldn't name his character Beaner on rock band because it was deemed to be an offensive slur.
Perhaps this response isn't quick enough for you but as I've stated about a million times (hello exaggeration), Microsoft cannot and should not act on a single complaint. Otherwise I could file an unjustified complaint against you now and ban your account.
I'm sorry that you feel this isn't sufficient action but it's possibly the fairest, most middle of the road, democratic approach that Microsoft can take. Your beef shouldn't be with MS but with the millions of users out there that are too lazy to press the little "file complaint" button.
If you're looking for proactivity then by all means, start at home. Start partying up and playing with friends and people you trust. Don't turn on the camera to strangers. If you open a message from someone you don't know, be prepared for anything.