The problem is, there ARE cheats built in the game that stop you from getting trophies.

These people are using hacks to play and GET those trophies. That's why they are being banned. I sort of agree with it, since that goes into your public profile and score. While it does not affect your online ranking, I suppose it might make others think you are better than you are.

I think the accounts should be wiped, but not banned.