Solo-banning doesn't solve the issue of the effects on the BGS from cheats. It just takes the cheat out of Open play, hardly a punishment. We gamers can spout outrage, and demand punishments, but Developers have to deal with usable proof, and real life legal matters. I am all for pointing cheats and hacks out to FD, but after that it has to be out of our hands. We cannot expect some satisfying result that gives us the warm feelies.
What would be a real punishment would be to remove the chance of gaining rewards/advancement in the game. Anyone who is caught hacking/cheating should just be a ghost. They could fly around, but have no impact. No damage to PC's or NPC's. No ability to take or complete missions. Nothing. The '5 for 1' cheat was bad enough. This state could be for a duration based on the offense, or it could be permanent based on the severity/frequency of the offense.