Hmm, yeah. I agree.
Although I think in addition to that, there should be a chat column to the side of SM. Where everyone can chat.

I think there should be limits, of course. No websites, no spamming. And Moderators can mute players for a set time if they see someone abusing chat or using racist or sexist phrases.

I'll attach a small picture of the layout.

As you see, I didn't go into great detail. I cut off the Intro (Welcome to SM), and only gave three chat examples.

I made the 3 different colors so you can distinguish players from each other.

Other players: Grey
Moderators: Gold
You: Black

Edit: Oh lord that picture isn't exactly Small, as I said it was, now is it?
Damn. Work around the size,

Haha I know.