Are the Bans too little too late?

The short answer from me is better late than never. There's a lot of upset people who's accounts are getting banned for exploiting, but honestly I don't see that as the issue. Instead, what I see as the issue is that there are a lot of players upset because they are seeing other players skate through unharmed. On some servers there are entire guilds of exploiters that are going completely unpunished.

What's the big deal?
It sends the message that the developers don't care about the players and are going to play favorites. It sends the message that some people are above the law. Finally, it sends the message that you can cheat to win, and people don't want to cheat to win a game.

Send a CLEAR message!
Only by sending a clear message will you squash the rumors. The message you want to send it cheating won't be tolerated. Instead the message you sent was cheating will be tolerated if you're not caught. The developers are so frightened of what might happen, that they do nothing and watches how it goes, that's the worst mistake a company can make.

Rollbacks and Item Wipes
I understand being afraid of losing a player base, but sometimes it's better to cut off the diseased limb rather than let it rot away the entire body. Right now you have a disease. Players that you want in your community are leaving because they can't compete with cheaters, they want to stay, but they don't want to play in an environment that fosters and rewards cheaters.

The only way to convince players that you mean business, and you won't allow cheating in any form, is to bring down the hammer. These people completely destroyed active servers and every day they are allowed to continue to remain, players leave. But worst of all, every article like this one gamers read, makes them not even want to play Raiderz. The fact that its so new and players like me are willing to lose all their items, it sends a message it's out of control.

Get it together, nut up, and make the tough decision. Nuke the bastards to show them you mean business.