While I do think that certain people or communities on Orkut court trouble by airing controversial views, they only do it because they have been given a lot of freedom by the website itself.
I should have a forum where I can talk about what I like and don't like and not have it looked up on as being instigative. I am not responsible for others getting influenced by my words or opinions, even if my intention is malicious.
No Orkut should not be banned but stricter regulations should be made to ensure that people don't go about carrying out character assassinations with undue cause there are minimised fallouts of such actions on the society overall.