Insults are relative. If you take out overt ones, passive-aggression would skyrocket. I would in fact say the "no insulting mods" rule should be gone. It's common sense and common courtesy to assume that insulting people won't fly and having a specific group marked as a no-insult zone has a bad implication.
Breaking explicit rules isn't the only way to get banned. It's also not instantaneous if you do. I'm not the head honch but my code is that if the forum in general wants something, they should have it. I work for you.