Hacking is a 6 months ban so I don't know what the hell most of guys are talking about.
No one who was caught hitboxing or shottbotting has been unbanned in just a month. If you see someone you reported getting banned and then play again the next day then something happened in their appeal obviously, and you can speculate whatever that now was but that could change our opinions on the ban.
What you're saying is that people would do anything to bypass and start over fresh and so we would earn more money but that's just not true at all.
6 months ban and then you get your acc back I wouldn't really call a reward.
The only time I have considered reducing someones ban is if they give some sort of valuable information really.