My understanding is that some accounts were banned. Presumably the particularly bad examples, judged by whatever criteria FDev chose. I thought they handled it well, aside from not acting sooner. I imagine the boy who cried wolf applied, and genuine reports were overlooked because they receive so many false positives from over-sensitive types.
One of the advantages of acting quickly is that more severe penalties can be applied. The excuse 'but everyone was doing it, this is so unfair' doesn't wash. But FDev have not acted quickly to stamp out cheating, so applying a stiffer penalty comes across as more of a punishment than the deterrent it should be (ie make an example of the few).
Well that's good news, I seem to remember one the things just before the module wipe was a comedy "they'll never dare punish me" bit of hubris. I agree the everyone excuse doesn't wash with me either, but it does definitely seem to be a popular view in relation to some cheats but not others.