I actually agree that the hacker policy ought to be stricter. Any stone wall use of a hacked client I think should result in a permaban- if there is any ambiguity either a tempban or no punishment should be given.
Why do I believe this? In my opinion, any person who is inclined to hack in order to win more often clearly lacks any empathy for his fellow players, and doesn't care for practising and improving the legitimate way. This kind of attitude I think is more or less ingrained in a person and unlikely to change. For comparison, look at reoffending rates in the US: the figures unanimously put it at over 50%. I know hacking in a video game and breaking the law are completely different matters, but the point still stands. A prime example of this in MCSG is a player called epardinas. Between us my friend and I have come across epardinas 4 times. All 4 times he had obvious no knockback, regen etc, and in 3 of the instances we were able to record and report him. But that's not all. epardinas has played over 6500 games and is yet to be permabanned, which is just ridiculous if you ask me. He shows no remorse- when I've confronted him about his use of hacks, he has pretended not to understand, despite speaking near-fluent English in chat just beforehand.
If this policy was adopted, not only would we flush out the hackers more quickly, but fewer players would hack in the first place. If I were a hacker myself and I saw a message in chat warning players of the strict anti-hacking policy, I would probably turn off my hacks or go elsewhere. Basically, a strict anti-hacking policy is the best deterrent for hackers.