Personally, I think the MMO genre is long past the point of 'sheltering' those who cheat and exploit. By this I mean, whenever someone posts on the official forums of whatever MMO "I saw PlayerX doing this, for two hours! He was botting for sure!" it's usually a matter of minutes until a mod deletes the post, asking people not to name names etc.
This is fine, due to the fact the poster may be wrong, BUT this policy also extends to the point of people who ARE punished receive their sentence privately etc, without anyone ever knowing.
Case in point, a guildmate of ours in EQ2 played like 12 hours a day, was always around, and he always had enough money for cobalt for a full set of armour etc, was always a step ahead of everyone else in regards to gear. This is fine of course.
But then he "went out of town for 5 days" at some point, and no one thought twice about it. Turns out, as he confided to some of us in MSN 6 months later, that he was actually banned for 5 days for having found to buy gold from one of the well known gold selling companies.
If he'd not told us about it, we would never have known.
Point is, there is no deterent at all for someone to buy gold in EQ2 (or whatever other game doesn't publicly announce cheaters). Keep in mind too that this fella was well regarded and looked up to in the community. A position he very much enjoyed.
Now consider this. A public notice board in the Harbour, listing a person's (character's) name, and the offence they've been found guilty of.
I wander past the board and see "PlayerX, guilty of illegally buying gold, to the sum of 10platinum. Sentence 5 day ban"... PlayerX's high reputation suddenly goes spiralling downwards.
You want a way to deter the everyday gamer from buying gold and exploiting? I personally think something along these lines would go a long way to helping reduce it, especially for short bans etc, because that person then has to log back in with the humiliation of everyone knowing they were banned.
There are other ways to do it, but I personally think it is high time that MMO Devs started to announce the names of cheaters to deter others from doing it.