Then, after their punishment, if they get caught cheating again they can be permanently banned from the game. LOVE IT!!
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I would be more in line with their punishment being doubled. Say they cheated, and were found out: Bungie puts these restrictions on them for 10 games. 10 games where they are being useless and getting eaten alive by the opposing team. Then, after the 10th game, they are back in the normal population. If they are discovered again - then they get the restrictions for 20 games. Then 40. Then 80. Then 160. And so on. Do not "ban" them - let them be chum for those of us that do not cheat. ;-)