I can agree with you on your point, /report is definitely needed there, however I think that you miss 2 major factors:
After you report someone with video evidence there is the 100% chance that they WILL get punished, even if it wasn't by your report.
Plus the player may learn from their mistake, like they should.
30 days is enough, and Permanent punishment is a perfect timer for them to think about what they have done, and consider if they should do it again or not.
Keep in mind, that getting a cheater banned by reporting them is a great thing, because you also make other player's games better, which is very important!
Don't give up, even if they are more than you.
They will get the deserved punishment, if you take the right actions.