Well if they're cheating and screwing up other people's games then they should be banned. From the video, the "rape" looks laughably simulated. I mean, it's literally just a player bent over and another player moving backward and forward so that it kind of sort of looks like they're having sex. You know, if you're 13, that sort of thing could be hilarious. I don't see how anyone is actually harmed by this though.
There are really only two ways someone can actually be harmed by any of this:
1) If their characters are being hacked and their ingame experience is screwed up by other people
2) If the hackers are harassing them via chat or message and for some reason can't be blocked easily (cos, like, they're hackers and stalkers)
Beyond that, this is just the media making something out of some of the dumbest crap I've ever seen.