This isn't a case of disagreeing. This is a case of you just being flat out wrong. No game is perfect just as no person is perfect. Error in code will happen. The ToS states that if you notice a bug to report it but if you continue to exploit said bug, you will be punished. The topic of this thread was very clearly a bug. The people who were banned as a result absolutely deserved it.
- - - Updated - - -
The reason he was banned was because he then started just farming the Military Wing with his guild to give them free loot. He absolutely deserved to get banned.