Oops! Sorry, this thread got lost in the sea of stuff - my mind is scattered. Sorry!
Hightek's post: What he's said is what is actually implemented to patch hacks. What he's said is spot on, and does happen.
Geoffs: I've also proposed many times resetting accounts to lvl 1 and keeping the purchased items.. buuttt.. it can't happen. There's too much complexy type stuff (So I'm told) around this, with regards to legal issues and technical issues. The same goes for 2nd warning then banning. As much as I, Chico and the entire team would love to permanently ban these people - what the lawyers say about it treat as 'final'. Permanent banning can't be done, only patching up the holes.
Sorry I can't bring any good news on this, I do agree with your posts - (if anything, blame the lawyers)
. I would expect of any company that their terms and conditions would be enforced and terminate access to people who don't wish to follow it fairly.