I propose that rather than just requiring a "real" email address to create an account, you should also require a "real" phone number. When you register your phone number, either a text message or an automated voice message is sent to you phone with a 4 or 5 digit number. Then you must validate your phone number by entering the code that was sent to that number.
That way, if someone is band from the game because of hacking, the person will have to register a new phone number to create a new account. This means that if the person has a cell phone and a land line, then he/she could only be banned twice unless he/she is willing to change their phone number or use a friend's.
Since there is a limited number of friends most people have, and changing your phone number is a pain, hopefully the hackers will eventually get weeded out (or at least the obvious ones).
If there account gets banned for hacking there should be a system where they can get their account back if they pay an extra "hacking fee" and then for the next six months, all their in game characters will have to wear a large pointy "dunce" hat to signify their offense and make it harder to cheat again without others noticing.
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