Literally no one does this in the industry, even if it sounds like a great idea on paper. Every big publisher knows that cheaters always bring negative cashflow to your company because they put off other players from playing. A single cheater in a 20 player game can put half of them off playing again, tarnishing your reputation at the same time. There is no universe in which "we'll just make cheaters buy our game again" makes any financial or any other sense - the goal is to get them to stop playing, permanently, and be enough of a pain in the ass that they never buy your game again.

>> so what a few legit people got wrapped up, enough buy back the equation

I've never seen any data that would support this. It just doesn't happen - if you accidentally ban a legit player they just get really pissed off and there's about 0% chance they will give you money again. Which is why you try extremely hard to not do that.