I haven’t had reason to apply that level of emotional/psychic/social harm in a game yet, but a few possibilities pop into my head immediately:
They’d all have to be based in the fictional moment, of course. And they’d be great results for actions initiated by expert NPCs. “The emperor’s representative signals to his men. ‘These fools will no longer be tolerated. They are banished upon pain of death from all of the emperor’s domains.’ Take level 4 harm ‘banished.’ Or would you like to resist that?”
The effect is that the character is nominally no longer playable. But just like with physical death, the game allows ways to get around it. Resistance is one. Becoming a ghost is another workaround for continuing a character’s story after physical death. It’d be fun to use/make some playbook ideas for those who have been banished or driven out of their minds. Deathlands scavengers? Haunted seers? Asylum inmates who live half in, half out of the ghost field?