A new blocked terms section
A section similar to Mod Actions, that shows when someone tries to type a word/phrase that is in the blocked terms list. It should show who is trying to send a message containing a blocked term, and it should show what the word/phrase is. I believe this would greatly help mods, moderate people who try to use inappropriate language. I know this is similar to Automod, but Automod doesn't show blocked terms being typed. So the issue is, someone could, for example, try to spam the n-word (or another commonly blocked term) but it would never go through, and then that same person, could chat normally right after. The streamer and the mods would never know that this person uses inappropriate language.

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AudrFox commented
Rather than a new 'blocked terms' section, I'll suggest messages users attempt to send that are 'blocked' get filtered into the automod queue with the following difference(s): instead of an 'allow' button, have a notification like, "[user] attempted to send a message containing a blocked term" with the message hidden and a 'show' button that will display what message was attempted in the automod queue (not in chat) if clicked.
In this way, mods and streamers (if they choose) will be able to SEE who may be trying to post something potentially terrible in chat they currently wouldn't otherwise EVER be notified of, and take appropriate action (timeout or ban) immediately, instead of what is happening now, which is Twitch effectively giving those people time to quietly figure out how to get past blocked terms just to get terrible messages posted in chat.