Flawed view, players are not obligated to report bugs.
Bugs/exploits exist in all games and in this game and there have been too many to list. All exist on a spectrum; Nature, scale & complexity. These are the assessment tools to use to determine the overall impact of any such event.
With this kind of bug (nature) the impact of the bug (scale) and it's impact on the continuity of the game (complexity) is of little to no consequence. There will be some who will attempt to exaggerate the severity and/consequences by taking a polarized view (black and white) however, the world (people who exist in it, the players) and games are not binary systems and through poor implementation (SSG responsibility) this could have been mitigated at release.
Further, there is a better way to nullify the impact of such bugs rather than universally and arbitrarily punish everyone without a separate investigation into each and every player and the unique circumstances underlying each and every event and without providing those accused and punished without a right of reply. A more balanced and long-term approach should have been the consideration that; The planned Introduction of level increases later this year and the expected new gear sets will have the effect of "phasing" out older gear, thus removing them from the game.
Much like the introduction of level increases put a greater emphasis on racial pastlives over heroic pastlives etc. Level increase, new gears sets etc will eventually mitigate the long-term effects of such a bug. Relax, this isnt a major issue and the problem will rectify itself.
Its not flawed. Its 100% true. If you knowingly and quietly took advantage of an obvious bug then that is entirely different to someone who did a bug report.
Im guessing youre in the knowingly took advantage group.