It comes up more often around the PED issue, but I've seen this idea resurface with this reinstatement news:
"The character clause means anyone associated with <issue> should be automatically DQ'd from consideration."
Here is what is actually stated in the requirements (pulled from the HOF site):
5. Voting: Voting shall be based upon the player's record, playing ability, integrity, sportsmanship, character and contributions to the team(s) on which the player played.
As it is laid out here, I can't interpret the character clause as some binary override switch that is to be used to remove someone from consideration. It is simply one of several factors to be considered. It's purposefully vague so that each voter can apply the criteria as they see fit, and allows for changes in attitudes and new information revealed to be considered.
Because of that, I support allowing banned players to be considered for the Hall. If enough voters feel that the character/integrity flaws outweigh the other factors that would otherwise put them in the Hall, then so be it. Based on the way Bonds and Clemens (and Schilling, which surprised me) didn't get close to gaining entry on their first Veterans Committee ballot, I don't think Rose and Jackson will be getting enshrined any time soon. But I think their cases should be made and considered.