It always amazes me when Dev's are so fucking sanctimonious that they punish their own customers for their fuck-ups. In Grabbit's example, he didn't cheat or find an exploit. He played the game. The game incentivizes you to find and gather mat's for your profession... and they give him the death penalty for doing that? WTF lol.
Think about a scale from 1 - 10 of egregiousness:
10 - You hack the game servers, steal credit card numbers, delete other people characters, and enrich your own.
8- You find a dupe bug and destroy a server economy.
6- ShowEQ level stuff, warping, manipulation of in-game stuff with GM level powers.
5- Scamming other players, intentional training, repeated egregious harassment, ninja-looting and generally taking advantage of their good-will.
4- Non-intended use of in-game mechanics, LOS, Pathing, Etc.
2- Find a repeatable quest, great source of money, exp, etc. Everything above board, you just find and do something that is better than intended.
1- Name violations, unintentional training, or being annoying in the chat channels.
If you are giving the death penalty to anything lower than a 6, you are straight up Re-Fucking-Tarded and a massive pussy. Own your fuckup, handle it quietly, give a slap on the wrist, and tell the player that you might even have given them a week of free game time in the future if they were the first to report that something seems off here and reported it.