It doesn't matter what their reasoning is. If they aren't going to take any action when receiving reports of players cheating, they should change the wording so people aren't misled into wasting their time filling out reports.
Right, more bots will be created. It shouldn't be the same bots, but that is currently the case. Of the bots I reported back in November, one was reported months before that. Still active and still botting. And, if what you said is true about the bots I'm talking about, they wouldn't be doing it on a character with most jobs at 60.