Your first point is dead on, the only reason people bot is because there's a reward they need but do not consider the investment/fun/reward ratios to be worth their play time. Normalizing gear in bg's and arenas, and keeping rewards strictly in the rated areas of the game and strictly visual, would reduce the number of bots overnight. You never saw wintrading or botting in skirmishes, because there was nothing to be gained from it.
Or maybe just give rewards once a day, that would still devalue botting quite a lot.

MMO-Champion
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