It appears that if I want to batch update the user state on a group of users I am unable to do so. Ie, I want to move a handful of people to a 'valid' user state via the batch update tool but I can't. I can only change usergroups... I can't set them to 'valid'.
I agree. If you are able to Batch Search for all users in a specific User State or a Banned State, it would only make sense that you are able to Batch Update those states for the users you Batch Searched for.