Q u o t e: I revert to the link posted in #20 of this thread
This is what your link says.
The current procedure for handling these issues is that any observed/reported user may be banned, despite how harmless a third-party feature may appear (25).
Problem is this is not what they do. You send them information regarding this, they do nothing. Hence the reason why D2 is overrun with mods. If they actually stayed on top of this, there would not be this problem. Most people would not mod if they knew they would lose their gear. At this point they are not scared at all because Blizzard does nothing.