Just get rid of them, ban them all. I have been playing MMORPGs since UO and nothing has made these types of games suck more, for me (and other players who play by the rules), than exploiters.
I have avoided PvP in most MMORPGs simply because of them (AO included), unless I know the people I am pvp'ing with. Exploiters completely destroy the continuity of the game.
My vote is to be as harsh on exploiters as possible. I remember when UO (OSI) completely banned whole guilds. I was happy to see them go.
I hope that you folks at Funcom can find the courage to nuke these people and groups. My guess is, is if you take the hard-line with them they will move on to the next game they can exploit and then, good riddance!
Of course not after Trolling and etc and etc.. immature peeps...
Thrin