He had access to some public Minecraft server for a while and initially I was like "this is fine", but it was like 5 days before he was telling people to kill themselves in the chat and yelling ethnic slurs into his headset... he's 7.

The battle is real, I've heard and seen things out of my kid the same age that left me speechless. Kids think that because it was on the screen or in their headset 100x that this must mean it's ok, and with the number of people who just give it a pass by not paying the least attention...

Formative years are no place for such anarchistic environments, particularly when they're used as an unmonitored substitute for actual engagement.