This guy is in blues because he was caught exploiting in 3s, but the blue posts stating he'd lose EVERYTHING didn't include him being removed from the 5s team he exploited on as well. At the end of the season, he still achieved rank 1. If Blizzard took away EVERYTHING from this person's ACCOUNT, he'd think twice about exploiting at all.
tl;dr - Blizzard needs the harshest forms of punishment for exploiters. Removal of all achievements, gear, AND (not "or") teams in addition to being banned for X period of time.