Answering as a Zone staff member, do not take me at this 100%.

1. Is this ban permanent for most players?
More than likely.
2. If permanent could we make it a timer based like jails depending on said players offense?
They could, but they shouldn't.
3. If someone is trade banned on an account and they play on the same IP address on a new account will that account get trade banned as well?
I'd believe so.
4. Could we just make certain items untradeable/locked so trade banned players can still access tables for basic items like food, traps, ect.
No. Imo, that's like asking if an event house banned player can only participate in team events.
5. Some players have been trade banned for scamming, is scamming still legal?
I don't know.
6. Could we give the option of having all tradeables removed in exchange of lifting the ban for some players?
No, that'll never happen. Defeats the purpose of it. Like the thread someone made a while back asking if they could pay for an unjail or whatever. This gives the top people easy passes through anything.
7. Do you think trade banning will damage the Trade Table economy long term wise?
Maybe. But, staff aren't really directly forcing that. Players themselves make the decisions which then ends in the trade ban result.
8. Should trade banned players be entitled to a refund on iTunes that has been spent towards tradeable/auction items?
Definitely not.