I think they are dumb
Why?
-Seems they never think of the "simple" stuff. (Basic Memory Editing)
-They can easy detect all of our cheats, but do they even know how? (Nope, else it would have been done long time ago)
So yeah, I suppose they just want to earn more money. (But then again, isn't that what it's all about? )
I think that 10% or more of their income is because of hackers/cheaters re-buying the game to continue.
But then again, they sit in their office and think something like:
"We hate cheaters, but... We're just way to lazy to deal with the "nooby" cheats. (So let's try to scare them a little instead )